Republic of Cyprus
General information
Cyprus has, especially after EU accession in 2004, rapidly developed into one of the most prominent financial centres in Europe. Cyprus has the lowest general corporate income tax rate in the EU (12.5%), a close to perfect tax exemption system for holding company income and double tax treaties in place with many countries. Cyprus does not levy any withholding tax over outbound dividends or interest. There is normally no withholding tax over royalties either. Cyprus is a politically and economically stable country where English, being one of the country’s official national languages, is widely spoken.
| Currency | Euro |
| Language | Greek English |
| Type of Law | Common Law |
| Type of Company | Limited Liability Company |
| Principal Corporate Legislation | The Companies Law Chapter 113
The Income Tax Laws of 2002 The Special Contribution for Strengthening the defence of the Republic Laws |
| Uses | Holding, servicing, financing, licensing and (other) trading, portfolio investment and investment fund activities, subject to possible restrictions as below |
| Trading Restriction | Certain activities cannot be undertaken unless a license has been obtained.
This includes banking, insurance and other financial services |
| Company Name | Previous approval required. Application rejected if the name is the same or very similar to existing company name |
| Language of legislation and corporate documents | Greek |
| Taxation | The LC is subject to income tax over its worldwide income from sources specified within the Income Tax Laws of 2002 |
| Corporate Tax | 12.5% |
| Annual Fee | €350 |
| Double Tax Treaty Network | Party to double tax treaties with other countries
read more |
| Registered Agent / Office | Must maintain a registered office address in Cyprus |
| Shareholders | Minimum number: One
Publicly accessible records: Yes |
| Disclosure of Beneficial Owner | Not publicly available |
| Directors | Minimum: One
Nationality:no restriction Publicly accessible records: Yes Location of meetings: Anywhere, from tax point of view usually advisable to be in Cyprus |
| Secretary | Local (not a legislative requirement but practically necessary) |
| Share capital | No minimum required |
| Annual Reporting | Must file Annual Return and Annual Accounts. Filing of audited accounts is required for income tax purposes. |
| Shelf Company | Abundantly available |