Cyprus Business, Taxation and Offshore Information
Cyprus is an independent democratic republic and member of the Commonwealth. It is prosperous, with a GDP per head of US$ 23,320 (2016). The economy is based around services, with tourism particularly important. Unemployment is slightly above the world average, at 10.8% as of June 2017.
The Cypriot government has worked hard to create a favourable offshore tax regime while maintaining a normal-looking domestic economy with low rates of taxation. The success of this programme is attested to by the tens of thousands of offshore companies that have registered in Cyprus since 1975. However, the island's entry to the EU in 2004 led to a restructuring of the tax regime, which took place on 1st January 2003. Domestic and offshore companies alike now pay 12.5% tax.
Cyprus has double-tax treaties with more than 50 other countries and territories, including most major Western 'high-tax' countries, and many Eastern European states. This unusual feature for offshore financial centre means that Cyprus is a very effective place for holding and investment companies aimed at emerging markets. More »