Cyprus, a well-established International Financial Centre, has always been an excellent location for holding companies from a tax and business perspective, among others. A Cyprus holding company is an important consideration in any international structure where there is a desire to minimize the tax imposed on income and gains.

Tax advantages of a Cyprus company

• Low corporate tax rate 12,5% on profit
• Dividend participation exemption
• Exemption on disposal of securities (e.g. shares, bonds, debentures)
• No withholding taxes on dividend, interest and royalty payments abroad
• No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains is attributable to the real estate holding)
• No succession taxes
• Attractive IP regime
• Tonnage tax for shipping companies
• Notional interest deduction for investments into Cyprus companies
• Personal tax exemptions for new residents and non-domiciled individual
• More than 60 double tax treaties

Other advantages of a Cyprus Company

• Low formation fees
• Secure bank system
• Free move of capital
• Use of English and Greek language
• Full member of European Union
• Member of United Nations
• Legal framework attuned to the European Acquis Communautaire
• Attuned legal legislation in accordance with OECD regulations
• Stable legal and tax environment (based on the Anglo-Saxon law)
• Double tax treaties with more than 55 countries
• Modern infrastructure
• Stable and modern public administration
• Friendly and stable business environment for investors
• High level of education and professional expertise

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