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ABOUT CYPRUS

Cyprus is strategically located in the north-eastern basin of the Mediterranean Sea at the crossroads of Europe, Asia and Africa. It is 65km south of Turkey, 96km west of Syria, 385km north of Egypt, 980km southeast of Athens and 328km west of Israel. It covers an area of 9,251 square km, making it the third largest island in the Mediterranean Sea. Cyprus has an estimated population of about 800,000 of which 78% are Greek Cypriots, 18% are Turkish Cypriots and 4% of other ethnic origins.

The capital of Cyprus is Nicosia, which is the main administrative and business centre of the island. There are five other towns: Limassol, Paphos, Larnaca, Famagusta and Kyrenia. (note: Famagusta and Kyrenia remain under Turkish occupation since the Turkish invasion in 1974). The legal system in Cyprus is a mixture of legislative statutes and case law and has been based on English Common Law. The official languages are Greek and Turkish. However, both the government and the private sector use the English language extensively. During the past decades, Cyprus has become an established reputable International Business center. This is not only because of its strategic location, the excellent telecommunications and the high standard of professional services but mainly because of the tax and other incentives that International Companies and businessmen enjoy in Cyprus.

WHY CYPRUS?

  • Full member of the European Union since 2004

  • Adoption of EU Directives

  • Extensive network of favorable Double Tax Treaties

  • No withholding of tax on payment of dividends, interest and royalties

  • flat corporation tax rate of 12,5% (one of the lowest in EU)

  • Tax exemption on profits of international business branches if their management and control is outside Cyprus

  • Full estate duty exemption on inheritance of shares in an international business company

  • No taxation of capital gains except on sale of immovable property situated in Cyprus

  • Full stamp duty exemption on contracts entered into by international business entities

  • Residence and work permits for foreign employees and their families can be readily obtained if they maintain an office in Cyprus;

  • No CFC or thin capitalisation rules

  • No exchange control restrictions

  • Highly qualified and multilingual labour force

  • Efficient accounting, legal and banking services

Want to find out more?

For more information on the Cypriot tax and legal system, please refer to our Publications section.

Publications