WHY CYPRUS

Cyprus is an independent sovereign State. It is a Member State of the European Union since 2004 and has one of the world’s most business-friendly legal, regulatory and tax regimes. Despite having the lowest EU corporate tax rate at 10%, Cyprus is not a tax haven, as it fully complies with EU and OECD standards, has stringent anti-money laundering legislation, a modern and EU-harmonized regulatory environment and an extensive network of double taxation avoidance treaties with a plethora of other States.

The tax incentives Cyprus offers are just one aspect of why Cyprus maintains its position as one of the most attractive investment destinations. We navigate our elite clientele on how Cyprus can be the ideal jurisdiction for the formation of ultimate or intermediary Holding Companies or Special Purpose Vehicles, the settlement of International Trusts for estate and wealth planning purposes and the establishment of Private Investment Fund (ICIS) and Cyprus Investment Firms providing financial services, including forex trading, brokerage services and investment advice and portfolio management.

Economic Freedom

The Heritage Foundation’s 2011 Index of Economic Freedom, covering 183 countries, ranks Cyprus’s economic freedom at 73.3, making its economy the 18th freest in the world. Cyprus surpasses countries such as Germany, Spain, Belgium, Sweden and Malta, amongst others, with an average score higher than regional and worldwide averages.

Cypriot economy benefits from strong protection of property rights and a relatively high degree of trade freedom. Tariff barriers are low, although overall trade freedom is muted by adherence to the standard European Union subsidies of agriculture. The financial market is sound and open to foreign competition, and the judiciary is independent, impartial and uncorrupted.

Low Operating Costs

Compared to its neighbouring region and the EU as a whole, Cyprus enjoys relatively low operating costs. Indicative of this statement are the following aspects of operating a business in Cyprus:

• Telecommunications costs are the lowest in the European Union

• Labour costs are significantly lower in Cyprus when compared to the EU average

• Cost of living: the cost of living is low, the best illustration of this fact being that Limassol, the commercial center of the island, was ranked as one of the least expensive cities globally in a March 2006 Cost of Living survey of Mercer Human Resource Consulting LLC.

• Occupancy costs: Office and living accommodation is relatively inexpensive with considerable choice.

Attractive Tax Environment

While the Cypriot tax system underwent a harmonization process to comply with the EU acquis communautaire, the appropriate actions have taken place to maintain Cyprus’s competitiveness as an international business centre and enhance its attractiveness as a suitable jurisdiction for holding companies.

Cyprus tax resident companies are subject to a uniform tax rate of 10%, the lowest corporate tax rate in the European Union.

Moreover, various tax exemptions apply for corporate tax such as:

• exemptions in respect of dividends received from other companies
• exemption in respect of interest income under special conditions
• favourable tax treatment of losses
• no tax on profits earned from permanent establishments abroad under certain conditions
• no tax on capital gains derived from the disposal of securities
• no tax on profits from company reorganisations
• tax relief of foreign tax paid

Our Services

Being a regulated Cyprus Law Firm, our services are rendered towards enabling you to harness Cyprus’ unparalleled advantages as a jurisdiction. Specifically, we provide services towards:

• Company formations in Cyprus
• Tax Planning and advice on corporate structuring, VAT and income tax compliance
• Settlements of International Trusts for wealth and estate planning
• Establishment of Private Investment Funds authorized by the Central Bank of Cyprus
• Formation and licensing of Investment Firms, regulated by the Cyprus Securities and Exchange Commission

Please see all practice areas in which we specialize or contact us to discuss your requirements at info@antoniou.com.cy or at +357-25-105038.