Dynamic island of investment opportunities at the heart of bustling trade routes linking Europe to the Far East
With its ideal geographical position at the crossroads of three continents – Europe, Africa and Asia – Cyprus is an ideal investment gateway to the European Union, as well as a portal for investment outside the EU, particularly into the Middle East, India and China. It has been a full EU Member since 2004 and a euro zone member since 2008.
Cyprus is a modern, cosmopolitan, transparent business centre offering opportunities for investment across a wide range of sectors with a number of key advantages:
- Access to markets
- Attractive tax system
- Low cost of doing business
- Excellent regulatory structure
- Advanced infrastructure
- Access to talent
- Strong business support services
- High quality of life
The key benefit of a Cyprus company is the uniform 12.5% corporate tax rate, which is one of lowest in the EU. Cyprus is also fully compliant with EU and international standards and provides access to an extensive network of more than 60 double tax treaties worldwide, including South Africa, Luxembourg, Mauritius, Singapore, the UK and the US.
International businesses may be operated in Cyprus under a number of legal structures, including private limited liability companies, partnerships, branches of overseas companies and alternative investment funds.
Cyprus Private Limited Liability Company
The most widely used corporate vehicle in Cyprus is the Cyprus Private Limited Liability Company, which is quick to form, provides access to the wide range of double tax treaties maintained by Cyprus, and offers a number of tax benefits.
General or Limited Partnerships
International partnerships can be registered in Cyprus. Partnership profits are exempt from local taxes unless any of the partners is a tax resident of Cyprus.
Branch of an Overseas Company
A foreign company may register a branch in the Republic of Cyprus. This has no legal effect but will allow the company to operate from Cyprus and commonly is adopted for commercial and marketing reasons. Branches are considered as permanent establishments and any underlying profits will be taxed accordingly in Cyprus.
Merger of European Company with a Cyprus Company
The European company should at the end of the merger be dissolved and the assets transferred to the Cyprus Company. This option is an alternative to re-domiciliation.
Re-Domiciliation to and from Cyprus
Cyprus allows for the domiciliation of a foreign company into Cyprus and for a Cyprus Company to re-domicile elsewhere provided the relevant jurisdiction allows it. The company will be de-registered in the country of formation and registered in the Country of the new domicile. Cyprus allows for all EU jurisdictions to re-domicile to Cyprus and also a number of other jurisdictions.
Societas Europaea (SE) in Cyprus
The SE (Societas Europaea or European Company) is a type of limited liability company with a separate legal personality that can be established in any EU Member State and can operate in accordance with a unified system rather than being subject to multiple state regulations. The head office and registered office of the SE must both be located within the same Member State and may be transferred anywhere within the Union without dissolving the company in order to form a new one in another.