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 Cyprus