Benefits from opening a company in Cyprus in terms of international taxation

Previously, Cyprus companies attracted foreign investors with a zero tax rate which is no longer true. However, after the legislation has been changed, Cyprus companies can still count on tax benefits. Local legislation does not regulate the ratio of debt and equity capital and transfer pricing.

The main benefits of starting a business in Cyprus are:
  • Fast and easy registration process
  • Possibility to establish a company remotely, without a personal visit
  • Low tax rates (dividend repatriation tax rate from 5 to 15%, interest repatriation tax rate 2%+; royalty repatriation tax rate from 5 to 10%)
  • Possibility to obtain VAT payer status, simplifying cooperation with EU members
  • Unlike absolute offshores such as the Seychelles, Panama and the British Virgin Islands, Cyprus companies are not exempt from reporting and taxation. Consequently, it is prestigious and convenient to have a Cyprus company to do business and cooperate with developed European countries
  • Foreign citizens have the right to own real estate in Cyprus

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