• Cyprus has been a full member of the E. U. since 1st of May 2004.

• The island is an already established international financial centre.

• It is the ideal place for incorporation of a company within E.U.

• Double tax treaties have been concluded between Cyprus and 38 countries,
   Russia, Ukraine included

• Due to the extensive double – tax treaty network, Cyprus is an ideal location for investments to   and from central and Eastern Europe and for investments to and from the European Union.

• Cyprus is a Low-tax country within E.U. and can offer you the lowest corporate tax regime (10%).

• Cyprus maintains an excellent legal and economic infrastructure. Accountants, Banks, Tax Authorities, Hotels and etc, have the highest Professional standards.

The above are only few of the reasons why thousands of business people around the world choose Cyprus as their ‘base’ for their business activities.



Some unique benefits that Cyprus IBC (International Business Company) offers to businessmen are:

Company which is resident

• A company which is resident is taxed in Cyprus on its worldwide income.

• Foreign taxes paid are credited against Cyprus Tax, paid on the same income.

• A corporate tax rate of 10% is applicable. This rate applies to the total income less total expenses.

• The company can be entitled to benefit under the double taxation treaties.

• Dividend income received in Cyprus from abroad is wholly exempt.

• Profits earned from a permanent establishment abroad are fully exempt from corporation tax,    except if

o More than 50% of the paying company’s activities result in investment income.
o The foreign tax is significantly lower than the tax rate in Cyprus.

• Profit from the disposal of shares and other securities are not taxable.


• Interest earned in the ordinary course of business is not taxable.

• 50% of interest earned is not taxable (other than interest earned in the ordinary course of business).

• Tax losses can be carried forward to be set – off against future profits (without time limit).

Company which is not resident

• A company registered in Cyprus but managed and controlled from abroad will only be taxed in Cyprus on its income generated in Cyprus.

• However such a company may not be entitled to benefits under the double taxation treaties.