Cyprus Encouragement Laws
- Cyprus tries to encourage investments from foreign investors.
- Among other reasons for the attraction that Cyprus holds for foreign investors are:
- A developed infra-structure including speedy and efficient access to all of Europe, east and west as well as to countries of the Middle East.
- A skilled work force, with a very good command of English.
- A developed scientific and technological infra-structure.
- A low crime rate.
- A low cost of living compared to the West.
- A low rate of corporation tax - 10% and additional tax benefits for investors.
Cyprus Approval of Investments
- As a general rule, there is no upper limit on the financial investment permitted or the percentage of the investment - and the investment ,almost in all sections ,may be up to 100% of the total project.
- Foreign companies, both EU and non EU nationals can invest in Cyprus with equal terms for local companies.
- Foreign residents may purchase real estate with a maximum area of 2,670 square meters. A special permit is required for a larger area.
- An investment in real estate must be made in foreign currency.
Cyprus Tax Benefits
- Dividends paid by a Cypriot company to a company overseas are exempt from deduction of tax at source.
- Activity in the free trade zone of Larnaca is exempt from customs duties.
- 20% of salaries of non-residents are tax exempt for the first 3 years, up to an annual exemption of EUR 8,550.
- Ships registered under a Cypriot flag have zero tax on profits and dividends received from a ship owning company.
- Capital gain from sale of a Cypriot ship, or sale of shares in a ship owning company are tax exempt.
Cyprus International Business Companies (IBCs) Companies
The cost of off International Business companies formation in CyprusThe following table gives an idea of the accepted costs for setting up an IBC Company in Cyprus (EUR):
|Setting up a company and registration fees||1,500-2,000|
|Supply of a registered office address||250|
|A local director||350|
|Supply of a mail box||170|