I. INTRODUCTION
Cyprus is an ideal place for direct investments, because of inter alia, its strategic position, its excellent infrastructure, its favourable tax regime, its well trained labour, as well as the existence of a wide network of tax treaties, with almost all major countries.
All investment activities are appropriate for the Cyprus tax environment, including inter alia:
- Holding companies;
- Finance companies;
- Trading companies;
- Royalty companies; and
- Investment Funds
II. WHY CYPRUS?
The advantages of using Cyprus are inter alia:
- Low taxation (i.e. the lowest rate in the EU).
- Extensive double tax treaties network.
- Exemption of capital gains on shares and securities.
- Exemption from tax on dividends received (in most cases).
- Exemption from withholding tax on the repatriation of income as dividends, interest and royalties.
- "Single EU Passport" (allows a company registered in Cyprus, to conduct a public offer in another member state of EU, or have its shares admitted to trading on EU Exchange Regulated Market).
III. CYPRUS COMPANY LAW – ENGLISH LAW
The Companies Law of Cyprus is closely modeled to the English Companies Act 1948.
Cyprus Tax Resident
In accordance with Cyprus Income Tax Laws, a Company is a tax resident in Cyprus, if its management and control is exercised in Cyprus.
Being a Cyprus tax resident, a Cypriot Company can rely on the wide network of double tax treaties, which Cyprus has, and it can take all benefits and advantages.
Re-Domiciliation Of Companies
The new law on re-domiciliation, provides the opportunity for Cypriot Companies to be re-domiciled abroad and for non-Cypriot Companies to re-domiciled in Cyprus.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.