| CYPRUS: the ideal offshore Centre
Cyprus governmental structure is modeled on Western Democratic systems. As from 1st May 2004, Cyprus is an official full member of the European Union. One of the Government's primary objectives is to attract foreign investors. To achieve this, it offers incentives to non-residents, encouraging them to establish legal entities for the purpose of managing their overseas affairs, or offering their services from a base in Cyprus. There are currently over 60,000 offshore business entities registered in Cyprus. Incentives for Registration
The business environment and supporting facilities combined with the island’s privileged position, the tax incentives, the low operating costs of offshore companies as well as the high standard of professional services, and telecommunications, contributed to the development of the island as one of the world’s primary business and financial offshore centers. Some of the main Tax Incentives in Cyprus are: -
International Business Companies are taxed at the low rate of 0 to 10 % maximum. -
Cyprus had concluded an impressive number of double tax treaties (there are currently 26) -
International business branches managed and controlled abroad are completely tax exempt. -
International business partnerships are completely tax exempt. -
No withholdings tax is payable on dividends interest and royalty payments. -
Annual capital allowances and all expenses incurred for the earning of income are allowed as deduction for tax purposes. -
The salaries of foreign employees employed outside Cyprus are tax exempt if remitted through Cyprus. -
Shares in International business companies inherited in Cyprus are exempt from estate duty. -
Income derived by way of interest on foreign capital imported into Cyprus and deposited with banks operating in Cyprus, is fully tax free. -
Full capital gains tax exemption is given on capital gains, except on sale of immovable estate situated in Cyprus. -
Full exception from local social insurance schemes in respect of their foreign employees. -
No V.A.T -
Well developed infrastructure with excellent telecommunication and banking facilities. -
The professional and management services offered in Cyprus are of very high standards. -
Foreign employees and their family members can secure work and residence permits very easily. -
Cars, office and household equipment are except from import duty. -
Excellent climatic and living conditions. Confidentially
International Business Companies must have a registered office in Cyprus. There are usually structured with nominee directors, secretary and shareholders whose details are place on public file. This type of structure guarantees total confidentially on Company records. The beneficiary’s details remain confidential and are not placed on public file. It is through these confidentiality requirements that companies enjoy a greater international reputation amongst business persons, than companies in other offshore destinations. | 
