International Activities
Cyprus is a member of the European Union since the 1st of May 2004. Because of the affiliation Cyprus modulated her legislation with the orders and the guiding lines of European Union and has proceed with the restructure of its tax system since the 1st of January 2003.
The new tax laws are in accordance to EU and OECD. A main characteristic of the new tax legislation is that from the 1st January 2003, there is not any difference between a local Cypriot Company and an International Activities one. Furthermore the taxation is based on the tax residency.
Cyprus is a country with a good regulatory framework. All international Activities Companies registered in Cyprus have to comply with applicable regulations and auditing requirements. In this respect, a Cypriot International Activities Company has no difference with any other company registered in any developed country in the world and therefore cannot be characterized as it is based in a tax haven jurisdiction . Cyprus has recently been excluded from the ¨Black List¨ of OECD countries that are considered as tax haven jurisdictions. All International Activities Companies have the choice either to operate from their own fully staffed office or to be based in accountants or lawyers offices in Cyprus. Besides the benefits mentioned above, the International Activities Companies can take advantage of their presence in Cyprus in order to establish financial relations between themselves. They are entitled to do business transactions provided that the subject of the transaction is limited to markets outside Cyprus. In this way, Cyprus provides a platform for entrepreneurs from around the world where they meet, negotiate and develop regional and global activities.
The main advantages for the International Business Units
The main activities of enterprises, international activities
The main reasons that Cyprus is attractive
The main advantages for the International Business Units can be summarized as follows:
The main advantages for the International Business Units can be summarized as follows:
- Corporate income tax is at 12,5%
- Dividends are excluded from taxes
- Income from a business abroad is completely excluded from any corporate tax under certain conditions
- Dividends received in Cyprus from a foreign company are excluded from tax in Cyprus under certain conditions
- There is no withholding tax on dividends and interest paid to non-residents. Also there is no withholding tax on royalties from sources outside Cyprus
- There is no restriction on time regarding the transfer of tax losses in the next accounting year
- Collective tax relief for companies in Cyprus
- The restructuring, mergers, acquisitions and alliances of companies do not have any tax implications
- Capital gains are not subject to taxation except the matter of sale of properties in Cyprus
- Agreements to avoid double taxation with other countries
- There are no restrictions on the foreign exchange control
The main activities of enterprises, international activities are the following :
Regional offices
Many well-known multinational companies have their regional offices in Cyprus. Among them are companies with consuming goods companies , high-technology , pharmaceutical companies , press agencies etc., etc.,
Trading
Trade is the most important activity. International Activities Companies are acting as intermediary agents or specialized suppliers for consumer goods, raw materials, machines and miscellaneous equipments.
Logistics
Many businesses have significant quantities of goods in a free zone or warehouses. These can be packed and shipped in smaller quantities in various customers abroad.
Investments
Due to the favorable taxation, a lot of people are using Cyprus as their base for investments, and asset management worldwide.
Other types
Other types of International Business Units, including the headquarters of companies, trusts, consultant services, printing and publishing companies, royalties, construction, insurances, shipping etc.
Why Cyprus?
The main reasons that Cyprus is attractive are the following:
- Is a democratic country and has free economy
- Strategic geographical locality in the crossway of Europe, Africa and Asia
- Telecommunication services including direct connection with more than 200 countries
- Effective legal system
- Updated auditing system which is based in English system
- Well-organized banking-system
- Low tax conditions
- Double tax treaties with 40 countries mutual protection treaties of foreign investments with 16 countries
- Low operational costs
- Well-trained H/R
Cyprus
25 March, Number 19,
3d floor, office 301,
zip code 2408, Engomi,
Nicosia – Cyprus
Telephone: (00357) 22 496471
Email: [email protected]
Greece
85 Vouliagmenis Avenue
City Plaza Mall
1st Floor – Office 312
16674 Glyfada
Athens , Greece
Telephone: (0030) 211 8007080
Email: [email protected]
[email protected]
United Kingdom
12 Gateway Mews
Ring Way
London
N11 2UT
Telephone: (0044) 20 8368 8456
T/Fax: (0044) 20 8361 4239
Email: [email protected]
Cyprus
25 March, Number 19,
3d floor, office 301,
zip code 2408, Engomi,
Nicosia – Cyprus
Telephone: (00357) 22 496471
Email: [email protected]
—————————–
Greece
85 Vouliagmenis Avenue
City Plaza Mall
1st Floor – Office 312
16674 Glyfada
Athens , Greece
Telephone: (0030) 211 8007080
Email: [email protected]
[email protected]
—————————–
United Kingdom
12 Gateway Mews
Ring Way
London
N11 2UT
Telephone: (0044) 20 8368 8456
T/Fax: (0044) 20 8361 4239
Email: [email protected]