Republic of Cyprus

General information

Cyprus has, especially after EU accession in 2004, rapidly developed into one of the most prominent financial centres in Europe. Cyprus has the lowest general corporate income tax rate in the EU (12,5%), a close to perfect tax exemption system for holding company income and double tax treaties in place with around 45 countries.  Cyprus does not levy any withholding tax over outbound dividends or interest. There is normally no withholding tax over royalties either. Cyprus is a politically and economically stable country where English, being one of the country’s official national languages, is widely spoken.

 

Currency: EURO

Language:

Greek
Type of law: Common law

Type of Company:

Limited Liability Company

Principal Corporate Legislation:

The Companies Law Chapt. 113
The Income Tax laws of 2002
The Special Contribution for Strengthening the defence of the Republic laws
Uses: Holding, servicing, financing, licensing and (other) trading, portfolio investment and investment fund activities, subject to possible restrictions as below
Trading Restriction:

Certain activities cannot be undertaken unless a license has been obtained. This includes banking, insurance and other financial services

Company name:

Previous approval required. Application rejected if the name is the same or very similar to existing company name

Language of legislation and corporate documents:

Greek
Taxation: The LC is subject to income tax over its worldwide income from sources specified within the Income Tax laws of 2002
Annual license fee: 220 euro
Annual Fee: 350 euro

Double Tax Treaty Network:

More than 50 double tax treaties

Registered Agent / Office:

Must maintain a registered office address in Cyprus

Shareholders:

Minimum number: One
Publicly accessible records: Yes

Disclosure of Beneficial Owner:

Not publicly available
Directors:

Minimum: One
Nationality:no restriction
Publicly accessible records: Yes
Location of meetings:  Anywhere, from tax point of view usually advisable to be in Cyprus

 Secretary: Local  (not a legislative requirement but practically necessary)
 Share capital: No minimum required
 Annual Reporting: Must file Annual Return and Annual Accounts.  Filing of audited accounts is required for income tax purposes.
 Shelf company:

Abundantly available

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