Monday, June 25, 2018 | CONTACT US

About Cyprus

Located at the crossroads of three continents, Europe, Africa and Asia, Cyprus is the third largest island in the Mediterranean.

The excellent infrastructure, the strategic geographic location, the highly skilled human capital, the strong pro-business attitude and the comprehensive treaty network with all the major countries of the world, have established Cyprus as an ideal reputable international financial centre.

Cyprus has developed and maintained excellent relations with countries throughout the globe and on many occasions it has been the venue place of important events and a bridge of communication between east and west.

Cyprus joined the European Union as of 1st May 2004. The benefits to Cyprus as a whole from membership of the EU are quite substantial, with the population of the island benefiting from political, economic, social, environmental and other advantages. Cyprus is also a member of the United Nations, the Council of Europe, the British Commonwealth and the Non - Aligned Movement.

The accession of Cyprus to the EU resulted in the reformation of its tax system and its legislation in order to become EU and OECD compatible. As such, Cyprus reaffirmed that it is not a tax heaven, but rather a tax incentive country. Cyprus’ corporate tax rate is one of the lowest in Europe and the tax regime secures many exceptions. Furthermore, the island’s Double Taxation Treaties with over 49 jurisdictions (and numerous others approaching final stages of negotiations) remain in force and continue to provide ample opportunities for international tax planning whilst also minimizing legally overall taxes for business and individuals.

The 2003 tax reform made Cyprus one of the most progressive international businesses, financial and commercial centres in Europe.

European enlargement and the accession of Cyprus opened up new gates to investors. Cyprus is now firmly established as the ideal gateway for EU inbound and outbound investment; this supplements the traditional relationship which Cyprus had with Central and Eastern European countries as well as with Russia, Ukraine, China and India.

In summary, Cyprus has become an ideal international financial centre and a significant destination for setting up international business companies mainly because of:
  • Cyprus’ strategic geographical location at the crossroads of three continents
  • Stable macro-economic environment 
  • Favourable climate for entrepreneurs
  • Range and quality of professional services offered 
  • Extensive knowledge and use of the English language, law and tradition
  • Competent local professional services and personnel 
  • Comparatively low registration and annual fees 
  • Excellent infrastructure 
  • Large number of International Treaties for the Avoidance of Double Taxation 
  • The lowest corporate tax rate in Europe

Cyprus Tax News

August 2017

New Cyprus 60-day tax residency test for individuals

In July 2017, Cyprus enacted new legislation, amending the income tax law and introducing a separate test for the purposes of determining Cyprus tax residency for individuals.