Proximity To Three Continents Is A Big Factor When You Set Up Business In Cyprus
The island of Cyprus is located at the hub of three continents, which are Africa, Asia, and Europe. As a former British Colony, English is a widely spoken language throughout the island with 80% of the population being relatively fluent, which makes conducting business in the region easy for foreign investors. It is a free market economy, providing investors with plenty of international business opportunities. First class legal and accounting services with excellent air links to the Middle East, Asia, and Europe are just some of the reasons why this nation proves to be an attractive business destination for investors. Why you should set up business in Cyprus? Here are some reasons why you should consider doing so:
Attractive Tax System
Cyprus has one of the lowest tax rates in the European Union and is a leader amongst the international tax planning jurisdiction scene. Registration of a company in the country is the ideal mechanism for protecting a business. As a member of the EU, Cyprus has quickly gained a reputation as a reliable country with legitimate jurisdiction and some of the lowest taxes in Europe.
Cyprus also has over 40 double taxation treaties to assist in its international tax planning. The other types of taxes available in Cyprus include:
- corporate income tax
- personal income tax
- Value Added Tax or VAT
- Immovable Property Ownership Tax
- capital gains tax
- special defence contribution tax
- inheritance tax
- stamp duty tax
A Prime Location for Holding Companies
As an international business and financial center, companies and investors benefit from the double taxation treaties and a transparent legal system available in Cyprus. You also get provisions in the EU Parent-Subsidiary and the Interest and Royalties Directive. The dividends which the holding company receives are generally exempt from corporate income tax. In most cases, they are even exempt from the special defense contribution.
Holding companies will also benefit from no withholding taxes on the distribution of profits. There are also no capital gains or income tax which will be applicable upon the liquidation of the participation or the liquidation of the company.
Straightforward Incorporation Process
Incorporating and setting up a company in Cyprus is a process that is straightforward and simple. You may set up business in Cyprus with only one director and one shareholder. There are no restrictions on foreigners acting as a director or a shareholder. The documents of the company can be filed in English.