Cyprus has one of the lowest tax in Europe. Companies are subject to 12.5% corporate tax.
For non-Cypriot citizens there is 0% dividend tax, either corporate shareholders or individuals. 

Find out more by downloading our WHY CYPRUS ebook or schedule an appointment for a free consultation and find out HOW TO 

1. Register Your Company In Cyprus
2. Open a corporate bank account
3. Get a Tax number and Vat Number
4. DO BUSINESS IN CYPRUS

Can Cyprus be your Ithaca in business?

Cyprus a cultural and business gateway to Europe, Africa and Asia

Cyprus history and culture dates back to 8,000 thousand years ago. Many of the island’s treasures are featured on the UNESCO World Heritage list. Cyprus is one of the most beautiful islands in Eastern Europe, combining the Mediterranean landscape, sunny and mild weather and blue flagged clean beaches. It is a great place for a family to live for a number of reasons such as the genuine local hospitality, low crime figures and high quality of life. 

For the last forty years plus Cyprus has made a name for itself as an international business center known for its neutral tax regime, investor friendly business culture, highly educated work force, solid banking and legal systems.

Cyprus is a state member of the European Union since 2004, which offers the country  political stability and immediate access to the latest developments in all aspects of living, such as stable health care, internationally recognised education standard and a liberal economy. The last Cyprus population count took place in 2017 and was 847.000 inhabitants.  

Why companies and entrepreneurs choose Cyprus for their business and residence

In a nutshell;

• High quality of work business services work force and strongly regulated accounting, taxation, legal and corporate administration professionals 
• The Cyprus legal system is based on English common law and is mirroring the British legal system, which is one of the most efficient and reliable legal systems in the world
• The Cyprus Company Registrar is based on the UK’s Companies House system, its legal aspects and is fully computerised.
• Cyprus Companies are obliged to follow the International Financial Reporting Standards of Accounting in accordance with all the provisions of International Accounting Standards Board
• Cyprus is a member of the United Nations and of the Organisation for Economic Cooperation and Development fully adopting the UN decisions and OECD recommendations for economic governance and development.
• The Cyprus banking system was founded based on the Anglo – Saxon system. Nowadays, Cyprus banks follow the world banking standards and are monitored by the European Central Bank.
• Cyprus’ unique geographical location is at the crossroads of three continents, Europe, Africa and Asia and plays a vital role in the Eastern Mediterranean region.  The island is an ideal investment gateway to the European Union and a portal for investment outside the EU, particularly the Middle East, India and China.

Cyprus offers one of the most attractive tax regimes in Europe, fully compliant with EU, OECD and international laws and regulations.

Some of the benefits are:

In more detail;

Cyprus is a full member of the European Union since 1st of May 2004 and adopted the Euro as its official currency of the Republic on 1st of January 2008.  This has launched a new era of opportunities for Cyprus companies and the Cyprus economy.  New funding opportunities have arisen from European funds to support Cyprus companies. In addition to this, Cyprus has established itself as an ideal location for inbound and outbound investments in the EU. 

The accession to the EU has provided more advantages for businesses in the single market. Cyprus provides a tax friendly environment in association with the Parent Subsidiary EU Directive.  This creates the opportunity to other Member State Companies to enjoy 0% on profit distributions from Cyprus subsidiaries. European Union membership allows access to European funds, grands and incentives programs.

Cyprus comprehensive and robust legal and regulatory framework is based on the English Common Law principles.  The Cyprus legal system is recognised as business-friendly, very effective and ensures transparency and reliability in business practices.  Cyprus offers foreign businesses a familiar and reliable framework within which to operate.  The Cyprus legal system is also fully compliant with the EU, the Financial Action Task Force on Money Laundering (FATF), OECD, FATCA, the Financial Stability Forum laws and regulations and EU AML directives.

The number of Cyprus employees with tertiary degree is one of the highest in Europe. As a matter of fact, Cyprus ranks amongst the top countries in Europe for tertiary education per capita. Its highly educated and skilled workforce constitutes one of Cyprus most compelling advantages, complemented by a broad range of high-quality professional services offered.  In addition under the Startup-visa scheme, professionals from third countries can also relocate. English language is widely spoken in the whole country. Besides English and Greek, Russian, Arabic, Turkish and French are also spoken

Cyprus offers sophisticated road, air and sea transportation solutions and services and a reliable telecommunications system which are recognised as an important competitive advantage in attracting foreign direct investment. 

• Cyprus has two multi-purpose deep-sea ports and are located in the coastal cities of Limassol and Larnaca. The Limassol port handles both passenger and freight cargo while offering logistic solutions through advanced facilities for cost-effective transport and processing. In addition, the Limassol port is a renowned cruise liner hub and a popular “stop-over” for international cruise ships. 

• Cyprus has two modern international airports in Larnaca and Paphos, which offer services to approximately 10 million visitors per year, connecting the island to the most popular transit hubs throughout the world. 

• Considerable investment has also been made to transform the island into a major telecommunications hub in the region, connecting Cyprus via submarine fiber optic cable and satellite to other networks in the Eastern Mediterranean basin and beyond.

Cyprus commitment to the continuous introduction of progressive measures for reform and growth has resulted in the impressive recovery of the Cypriot economy much earlier than expected. Cyprus constitutes today a success story for the EU, a fact enhanced by continuous upgrades from credit rating agencies such as Standard & Poor’s, Fitch and Moody’s.  Cyprus’ key economic sectors are constantly being developed and improved including introducing structural changes and important reductions in expenses and operational costs.  This evolvement has been instrumental in Cyprus regaining its credibility and reinforced its competitiveness as an attractive investment destination offering numerous opportunities and potential.

Creating value through ideas and having the potential of becoming a key driver of economic growth, the development of the Start-Ups sector is deemed of great importance for Cyprus. In this direction, significant incentives have been introduced by the Cyprus government in order to boost innovation and entrepreneurship, such as the approval of a package of tax incentives of investment into start-ups, as well as the introduction of the Start-up Visa for third country nationals.

The Intellectual Property Box allows such companies to reduce tax expenses and investment cost under a special tax treatment. The Cyprus IP Box is in compliance with various international agreements and treaties, protecting companies that own Intellectual Property rights. Some advantages that make Cyprus a great place for start-ups and tech companies.

Cyprus offers low business costs to launch and low running costs. Labor costs and office space costs are still relatively low in Cyprus, allowing companies to invest more funds on research and development. 

Last but not least, Cyprus offers a quality lifestyle with a high standard of living in a safe, clean and healthy environment. The low crime levels, 340 days of sunshine, fresh air clean beaches and beautiful mountain landscapes, centuries of art and culture, and a unique Mediterranean gastronomy contribute to a high quality of life.  Safety is amongst the biggest advantages of Cyprus, which has been ranked the safest smaller country in Value Penguin’s Safest Countries in the world (2015) and fifth worldwide.

What Clients Are Saying

“I had a successful cooperation with Mr. Andreas I. Demetriades for a number of years. He helped me organize and file my personal taxes and provided audit services to a number of my private companies. Since Rodoula has now digitalized the business, we are cooperating with Ithaca Services on a bigger scale and look forward to keep doing so in the years to come.”

Loizos Loizou

CEO Entertainment Sector Greece, Cyprus

“We rely on Rodoula to look after the financial statutory reporting needs of UK subsidiaries in Cyprus. We are pleased with her service and that of her team.”

Nataliya Pidlubna Fausch

Chartered Tax Advisor UK