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Why Cyprus

Fiscal incentives and legal framework

Political climate and strategic location

Located in the Eastern Mediterranean, Cyprus is strategically situated at the centre of three continents: Europe, Asia and Africa. The islands’ location has played a pivotal role in shaping it’s rich 10,000-year history and helping Cyprus to develop into a convenient and important centre for trade and international business. A stable political environment, legislation that is harmonised with the European Union Legal Order and a business-friendly tax and legal system based on English Common Law have consolidated Cyprus’s reputation as a reputable, user-friendly and attractive business setting. Well established air links provide excellent connectivity to regional and international hubs – an hour’s flight to Athens and Israel, three hours from Moscow and Dubai and four hours to London.

Few jurisdictions can provide the tax advantages comparable to the Cypriot tax regime. Since 2005 Cyprus’ EU-compliant tax regime offers one of the lowest rates of corporate taxation in the EU at 12.5%. The tax system is underpinned by simple administrative procedures and an extensive network of Double Tax Treaties with over 60 countries. Tax exemptions also apply to gains from disposal of securities; profits earned from a permanent establishment abroad; dividend income received in Cyprus from a foreign corporation; and capital gains (except for the on sale of immovable property in Cyprus). The tax system is in full compliance with the EU Code of Conduct for Business Taxation with EU tax directives and the OECD guidelines against harmful tax practices.


The legal framework and best practice principles adopted by the Government have consolidated Cyprus as one of the most attractive EU jurisdictions for the registration, structuring and management of trusts, holding companies and investment funds. This business-friendly tax and legal system is further underpinned by comparatively low setup and operating costs.

Membership of international organisations

Infrastructure and economy

The Republic of Cyprus has been a full member of the EU since 2004 and complies with all EU directives and regulations. It is also a member of the Eurozone, the Council of Europe, the United Nations, the Commonwealth of Nations, the International Monetary Fund, the World Trade Organisation (WTO) and the World Bank.

Alongside offering a fantastic quality of life and Mediterranean climate, Cyprus offers a competitive financial and business infrastructure. The modern and evolving free-market economy is primarily built upon tourism, real estate, professional services and shipping. English is extensively spoken by the local population and is used widely in business communications. The jurisdiction also benefits from developed communication and support services including a modern ICT infrastructure and an established banking and financial service sector underpinned by an active Stock Exchange and robust Securities and Exchange Commission.

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