THE HISTORY: As the legend goes, Cyprus is the birthplace of Greek Goddess of love and beauty, Aphrodite. It is written that the Goddess emerged from the sea foam of the royal blue waters near ‘Petra tou Romiou’ at the south coast of the island.  

 

A vast number of ancient civilizations throughout the centuries have either settled, or crossed the island. Located in the Eastern Mediterranean, the Island’s strategic position in relation to Asia, Africa and Europe, together with its deep forest areas and cooper mines, made it a prized location for anyone. As a result Cyprus has had many visitors, most of which left behind historical monuments, some of which include vast temples to their Gods, majestic castles, beautiful churches.

 

 

THE CLIMATE AND TOURISM: Cyprus is far most known for its good, mild and pleasant climate, with over 300 days of sunshine per year. Water sports and skiing are among the most favorite entertainment offered in Cyprus.  Many hotels and restaurants can be found even in the most remote village of Cyprus, which enables the island to accept tourist arrivals three times the local population.

 

 

DOING BUSINESS IN CYPRUS: Being a member of the European Union, Cyprus also allows a 0% tax on Dividends received (dividends received by a Cyprus Company, provided some conditions are met) which makes Cyprus preferable in setting up holding companies, whilst also providing a 0% withholding tax on Dividend payments (payable by a Cyprus company to its foreign shareholders), and no tax with reference to payment of dividends to any of its foreign and non-resident shareholders.  With regards to transferring overseas, any immovable property  owned by a Cyprus company, it is a fact that there is no capital gains tax to be paid and in addition the Island also enjoys a 12.5% corporate tax which is essentially one of the lowest corporate tax rates in the EU.

 

Businesswise, there are a lot of reasons why anyone would choose Cyprus as the base of their business. Essentially the legal system of Cyprus is based on the English legal system (common law), which makes it easier for any entity governed by common law rules to establish their business in Cyprus. The Island’s legal system allows an interested party to use many means of legal and administrative services; Trust establishment, Insurance, Arbitration, Corporate and fiduciary services, accounting and auditing.

 

 

TAXATION: Cyprus has signed a vast number of double taxation treaties, with over 40 jurisdictions. Cyprus stands today, post its reformation stage at a much better position having created strong business foundations. After the recent discovery of the island’s natural gas, there was increasing interest noted with regards to investment, from a wide range of countries, including but not limited to China, India, South America and Middle East. Business in Cyprus is increasing dramatically and it has slowly being considered as one of the most popular sectors of interest in the Island. 

 

 

The main features of a Cyprus company are:

 

1.  lowest corporation tax in Europe,

2. no withholding taxes except on outgoing royalties paid on rights exercised in Cyprus,

3. no capital gains tax except on real estate located in Cyprus,

4. the lowest social security tax rates in the EU.

5. The liability of its members is limited to their share participation.

6. The Company has its own legal personality and this personality is distinct from its shareholders.

7. The minimum number of shareholders is one and the maximum number is fifty.

8. Shares cannot be issued to the bearer.

9. There is no minimum issued and paid up share capital for  companies.

10. Nominee shareholders can be used where confidentiality is desirable.

11. General meetings of the shareholders of the company may be held either in Cyprus or abroad.

12. The Company must have a registered office in Cyprus.

13. The Company must appoint one Secretary, who may be local or foreign, physical or legal person.

14. The minimum number of directors is one and there is no maximum number.

15. In order to ensure that a company is managed and controlled in Cyprus (so as is considered resident or tax                       purposes),  directors should be Cyprus residents

16. The company must have a Memorandum and Articles of Association prepared by a lawyer in Cyprus, which must  be         signed by the subscribers  and deposited with the Registrar of Companies.

17. Bank accounts of any kind may be opened in any currency, either in Cyprus or abroad.

18. Bank accounts opened in Cyprus are operated without any exchange control restrictions

 

 

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