Cyprus is one of the most popular countries in Europe to incorporate a company. Variable factors, such as favourable tax legislation, simple corporate legislation, and the country’s stable tax policy, made Cyprus an appealing jurisdiction. With a modern, free-market, service-based economy giving international investors and domestic businesses confidence to invest, grow and prosper. The tertiary sector of services is considered the backbone of the Cypriot economy and with a high income per capital, the consumer market is particularly strong, hence thousands of new companies are registering with the Registrar of Companies each year and therefore making the country one of the most attractive places in the global economy. Some of the main advantages a Cypriot Company can benefit are:

Low Corporation Tax

Having as an advantage the lower corporation tax rate of 12.5% instead of much higher corporation taxes that most of other Countries have, Cyprus is placed among the lowest rates within the European Union (EU). This can have a major impact on the bottom line of any entrepreneurs to legitimately contact business.

100% Foreign Ownership

Cyprus companies can be incorporated by 100% foreign Ownership and with a minimum requirement of one (1) shareholder and one (1) Director. Corporate or Natural Persons (Of any nationality) may act as Shareholders and/or Directors.

Exemption from corporation Tax on Dividends

Any dividends paid to a Cypriot Company are exempted from corporation Tax and no withholding Tax on dividends that are repatriated to a non-resident shareholder individual or company is charged.

Double taxation benefit from other Countries

A Cypriot company has the benefit on Double taxation treaties between various countries all over the world which are agreements between 2 countries designed to protect against the risk of double taxation. Such countries include Russia, France, India, Ireland, China, US, US, Canada and more than other 50 Countries.

Company Registration Procedure

Registering a Cypriot Company has a simple, rapid and straightforward procedure compared to other countries which can be implemented in steps taking a less as one (1) week to have a registered company.

Foreign VAT Reclaim with EU and certain countries outside EU.

Since Cyprus is within EU and has some reciprocity agreements with other non-EU Countries, Cypriot companies can benefit from the VAT Return on expenses which may had in other EU and non-EU Countries such as Switzerland & Israel. Subject to different rules, regulations and VAT rates applicable in each country of refund, a company can recover VAT on business travel expenses including hotel nights, restaurants, car rental, fuel, rail, other public transport costs, conferences and seminars or any other service that has been charged with VAT.