Why Cyprus Continues to Be an Attractive International Business and Tax Jurisdiction
Cyprus has established itself as one of Europe’s leading international business centres by combining a competitive tax framework with full compliance with European Union, OECD and international transparency standards.
Today, Cyprus continues to attract multinational groups, entrepreneurs, investors and high-net-worth individuals seeking a stable and internationally recognised jurisdiction from which to structure their business and investment activities.
Benefits for International Businesses
Cyprus offers a wide range of advantages for international companies, including:
- Competitive corporate tax framework.
- Attractive Holding Company regime.
- Participation exemption on qualifying dividend income.
- Exemption on qualifying gains from the disposal of securities.
- Extensive network of double taxation agreements.
- No Cyprus withholding tax on dividends paid to non-residents, subject to the applicable legislation.
- Availability of Notional Interest Deduction (NID), where applicable.
- European Union and Eurozone membership.
- Stable legal system based on English common law principles.
These advantages make Cyprus an attractive location for holding companies, regional headquarters, investment structures and international trading operations.
Benefits for Individuals
Cyprus also offers attractive opportunities for individuals relocating to the island.
Subject to the applicable legislation and qualifying conditions, these include:
- The Cyprus Non-Domicile regime.
- Cyprus tax residency under either the 183-day rule or the 60-day rule.
- Permanent residency options for qualifying applicants.
- Attractive personal tax incentives.
- High quality of life and modern infrastructure.
- Excellent healthcare and education.
- Safe and family-friendly environment.
These features continue to make Cyprus an attractive destination for entrepreneurs, executives, investors and their families.
International Compliance
Cyprus operates within a transparent and internationally recognised regulatory framework.
Its tax legislation complies with European Union law and incorporates OECD standards, including measures relating to economic substance, anti-abuse provisions, transfer pricing and international tax transparency.
Businesses considering international structures should ensure that appropriate commercial substance and governance arrangements are established and maintained.
How UHY Can Help
Choosing the appropriate international structure requires careful consideration of commercial, legal and tax objectives.
Our experienced professionals can assist with:
- International tax planning.
- Holding company structures.
- Business relocation.
- Personal tax planning.
- Tax residency planning.
- Corporate and fiduciary services.
- Accounting, audit and compliance.
- Immigration and relocation support.
For more information on how we may assist you, please contact us at uhy@uhy.com.cy or call +357 22379210.
The contents of this publication are provided for general information purposes only and should not be regarded as legal, tax or professional advice. Specific advice should always be obtained based on your particular circumstances before taking any action.