:: The Market Place ::
Cyprus is now a full EU member, so all companies registered on the island enjoy EU status as well as benefiting from the lowest national taxation environment of any member state.
As such, a large number of individuals use Cyprus as a base for holding and managing their investments worldwide. The major advantages of doing business and investing in Cyprus are:
- Net corporate profits are taxed at 10%.
- Companies in Cyprus pay no withholding tax on dividend distribution, interest or royalty payments.
- Dividend income and profits from the sale of shares are tax exempt.
- Cyprus has concluded and ratified double taxation treaties with nearly 40 countries. These are designed to avoid the double taxation of income earned in any of the signatory states. This combined with Cyprus’ overall low and favourable tax regime offers significant possibilities for international tax planning.
- Interest from foreign capital imported and deposited in banks in Cyprus is exempt from income tax.
- No exchange control restrictions, so you can hold bank accounts in any currency and transfer funds anywhere in the world. We are able to refer our clients to professional tax advisers who can assist with both corporate and personal tax planning.
Looking at property in Cyprus as an income-generating asset, you should know that current income returns are between 5% and 8%. This percentage may be higher depending on location, quality of construction and the type of property.
The Cyprus property market gives you great opportunities to invest. Both capital and income returns are something that you will find fascinating in this part of the world. Cyprus is without a doubt the big success of the new EU states.
