KEY BENEFITS OF COMPANY FORMATION IN CYPRUS
Located in the Eastern Mediterranean, the island of Cyprus is conveniently situated at the hub of three continents; Europe, Asia and Africa. The population of the Republic of Cyprus currently stands at approximately 850,000 with the majority residing in the four main towns of Nicosia (the capital), Limassol, Larnaca and Paphos.
As a former British Colony, English is widely spoken throughout the island with 80% of the population being relatively fluent. The legal system is structured on its English counterpart and is based on common law with many Cypriot Lawyers being trained in the UK. The Republic of Cyprus is a free market economy providing vast opportunities for international business and efficient tax planning. With first class legal and accounting services, excellent air links with Europe, the Middle East and Asia, Cyprus is a great location to conduct business.
Cyprus is a leader amongst international tax planning jurisdictions and registration of a company in Cyprus is the ideal mechanism for protecting a business. In the last decade the role of Cyprus in international tax planning has increased dramatically. As a member of the EU Cyprus has quickly gained a reputation as a reliable, legitimate jurisdiction with some of the lowest taxes in Europe in addition to having over 40 double tax treaties to assist in international tax planning.
A combination of favourable factors have led to Cyprus becoming a popular jurisdiction to form a company and in the last decade the role of Cyprus in international tax planning has increased dramatically.
The admittance of Cyprus to the European Union in May 2004 has ensured advantages in terms of increased legitimacy and compliancy; Cyprus is now included in the Organisation for Economic Cooperation and Development (OECD) White List.
One of the major benefits of Cyprus is the Corporation Tax Rate; Cyprus has one of the lowest tax rates in the EU with only 12.5% Corporation Tax.
Additional benefits are as listed below: