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Why do business in Cyprus?

Tax System

Cyprus offers one of the most attractive tax systems in Europe. The country provides a simplified, effective and transparent tax regime that is fully compliant with the EU laws and regulations, rendering it as the ultimate international business centre.

Key Features of the Cyprus Tax System
Amongst Others:

• One of the lowest effective tax rates in the European Union
• 12.5% corporate tax rate
• 0% Tax on Dividends (for Legal Entities)
• A tax administration that aims to assist foreign investors
• Wide network of tax treaties with over 55 countries



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Strategic Location

Cyprus is situated in the eastern corner of the Mediterranean Sea, lying at the crossroads of Europe, Africa and Asia and close to the busy shipping and air routes linking Europe with the Arab world and the Far East.

The country's geographical location has been considered of strategic importance in global trade for thousands of years. Its strategic position has played a major role in the development of the island as a base for many of the world’s leading multinationals.

The Cyprus Legal System

Cyprus’ primary corporate statutes are based on and derived from English company legislation and its legal system is modelled on the English common law system. Cyprus legislation is fully compliant with European Union legislation. European Union Directives are fully implemented into local legislation and European Union Regulations have direct effect and application in Cyprus.

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