Cyprus remains an attractive destination for international businesses
As most of you are already aware, the banking sector in Cyprus is currently facing exceptional difficulties due to the recent decision of the Eurogroup and consequently, the tough measures that are being introduced by the Cyprus Government. Despite being tough, these measures apply only to two (out of forty) banks on the island with the aim, not only, to reinforce the banking sector, but ultimately to provide a stable and solid financial environment and further economic growth.
The reforms imposed do not affect the favourable investment and tax environment of Cyprus which continues to offer opportunities for multinational entrepreneurs and their business activities. Furthermore, the use of Cyprus companies for international structures and transactions continue to be efficient and effective. The international business community can benefit from the following advantages which Cyprus still offers:
• Cyprus has double taxation treaties with 50 countries
• Even after the proposed increase of 2,5%, Cyprus will still have one of the lowest corporate tax rates within the European Union (12,5%)
• There is no tax on financial transactions
• Dividends received by companies either from Cyprus or abroad are tax exempted
• There is no withholding tax on payments of interest, dividends and royalties to non-residents
• Mergers, takeovers and other company re-organizations can take place within groups without tax consequence
• Gains from the sale or transfer of shares and other securities are exempt from income tax
• There are no thin capitalization rules
• Low duties/taxes apply on the establishment of companies
• Cyprus’ intellectual property laws are in line with the EU acquis communautaire and international IP rights. A new tax exemption has been introduced of 80% of net income derived from the sale or exploitation of Intellectual Property
• Numerous other advantages such as strategic geographical location, excellent infrastructure, quality, expertise and cost of professional services offered, flexible and modern legislation, mainly based on the English legal system and many others.
May we take this opportunity to thank all of you who have been working closely with us and trusting our services for the fulfilment of your requirements. This year we celebrate our 50th anniversary in the provision of professional, efficient and dedicated legal services in Cyprus and abroad. Throughout this course, we have managed to overcome many challenges and such encounters only made us stronger. We reiterate our commitment to all of you, our clients, associates and friends, that we will continue servicing you with the same passion, dignity and professionalism for the next 50 years and even longer.
From the Partners, Lawyers and Staff of
Patrikios Pavlou & Associates LLC and
PageCorp Group
