Onshore and Offshore Benefits in Cyprus


Cyprus - the complete solution for flexible low tax companies

Cyprus has established itself as one of the world’s most favoured jurisdictions for low tax companies, offering the lowest corporate tax rate in Europe. The Mediterranean island is ideally placed, both in geographical terms and as a full member of the European Union, to be a leading financial hub for international business. Besides services to Cyprus companies, the Cyprus offshore service industry provides banking, legal, corporate advisory and other essential services for thousands of offshore companies established in major offshore jurisdictions.

Tax Benefits

Besides the lowest tax and VAT rates within the European Union, Cyprus has forged extremely favourable double tax treaties with almost 50 countries worldwide. Of the many advantages for companies registered in Cyprus, the tax benefits include low tax on corporate profit (12,5%), unilateral tax exemption on dividends to foreign shareholders, an extremely broad tax exemption system for holding company income, credit for foreign taxes on income earned abroad, exemption for income from foreign permanent establishments and offset of losses from such establishments. Employees of Cyprus companies, and offshore companies based on the island, also prosper from low personal taxation and duty agreements.

World-class business services

In addition to the favourable tax environment, Cyprus offers offshore companies being serviced from Cyprus an increased reputation over other offshore jurisdictions, due to its EU membership and its compliance with European law. It also benefits from a well regulated and secure financial infrastructure, with high level banking, accounting, auditing and legal services. British law has strongly influenced the formation of the legal system, therefore companies familiar with the UK system find it easy to do business on the island, especially as English is widely spoken and used.

Island of opportunity

The range of opportunities for international business includes full servicing of offshore and local entities and banking units, the establishment of offshore trusts and international commercial arbitration and the registering of ships under the Cyprus flag. A highly qualified workforce, combined with political stability, and of course the amazing climate, makes it easy to see why Cyprus is so attractive to so many of the world’s leading companies, to administer their Cyprus and offshore companies from here.

Strength to strength

Cyprus is set to further develop its position as a leading provider of services to the European holding and trading companies as well as the offshore company community, with new treaties being established and deeper ties made with existing major markets such as Russia, Eastern Europe and the Middle East.