1. Cyprus is part of the European Union
Being part of the European Union will give your business international credibility. As a member of the EU, Cyprus is compliant with the EU Directives and Regulations, the Financial Action Task Force on Money Laundering (FATF), the OECD, FACTA, and the Financial Stability Forum laws. This means it is not “blackisted” like other tax haven jurisdictions. If you start a company in a blacklisted jurisdiction, you could have difficulty conducting banking transactions as some international banks will not deal with you, which in turn can affect your ability to carry on business.
Starting a company in Cyprus could be a first step toward getting EU permanent residency, which will allow you to live and travel visa free within the EU.
2. The Legal System is based on English Common Law
As a former British territory, th e legal system is based on English Common Law. This means that it follows well established business practises used in other international financial centers and ensures some element of fairness and transparency unlike other jurisdictions.
3. Tax Advantages
Cyprus has one of the lowest tax rates in the EU. Currently it is 12.5% on net corporate profits.
There are many other tax advantages. Including:
• No tax on dividends
• No tax on revenues from trading securities
• No tax on profits from the sale of real estate abroad
• No tax on profits from businesses abroad
• No tax on income from selling your company’ s shares
• No tax on royalties paid to non-residents
• No tax on interest or rental income for non-residents
• Cyprus has more than 60 tax treaties to avoid double taxation
4. Climate
Cyprus is situated in the Mediterranean, so it has a warm and sunny climate year round.
5. English is widely spoken
The official languages of Cyprus are Greek and Turkish. But as a former British territory, English is widely spoken everywhere, especially in the legal, accounting and financial services.
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