Cyprus

Country: Cyprus
Region: Europe
Currency: Euro (EUR) (€)
Languages: Greek, English
Time Zone: UTC +2

Communications: Good

Formation Cost: 2800 - 4600 USD$
Formation Time: 5 - 9 days
Maintenance cost: 1600 - 2200 USD$

Executive Summary: The economy is dominated by services, with tourism particularly important. The government worked hard to create a favourable offshore tax regime while at the same time maintaining a normal-looking domestic economy. Domestic and offshore companies alike pay 10% tax. Cyprus has double tax treaties with over 40 countries, and is particularly useful as a conduit for FDI into ex-USSR countries. It is a relatively expensive jurisdiction for offshore operations, and many documents need to be filed in Greek. Recent troubles over the exposure of the banking sector to Greek debt are likely to be short-lived, and the current inept administration is almost certain to be thrown out next year.

Suitable for: Wealth Management, Treasury Management, Shipping, Yachting, Intellectual Property/Licensing, Holding Companies, Property Ownership
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Vehicle Types: Limited companies, public limited companies, branches, general partnerships, limited partnerships, sole proprietorships and trusts

Capital primary business districts: Nicosia, Limassol, Larnaca

Good Relationships: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, United Kingdom

Bad Relationships: Burma, Egypt, Iran, Korea (Democratic People's Republic of), Libya, Somalia, Sudan, Syria, Turkey

Tax Burden - Business: Light

Tax Burden - Individual: Moderate

Headline tax rates: CIT 10%, PIT 20-35%, VAT 18%

Treaty Jurisdictions: Armenia, Austria, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kuwait, Kyrgyzstan, Lebanon, Malta, Mauritius, Moldova, Montenegro, Norway, Poland, Portugal, Qatar, Romania, Russia, San Marino, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Sweden, Syria, Tajikistan, Thailand, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan

TIEA Jurisdictions: None

Information Links:

• Cyprus Lowtax Service Providers Directory
• Cyprus Tax-News
• Cyprus Treaty Updates
• Cyprus Lowtax Knowledgebase