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January 28, 2021

What Are The Benefits Of Forming A Company In Cyprus?

What Are The Benefits Of Forming A Company In Cyprus?

Cyprus is a very popular choice for businesses to open Cyprus International Business Companies or IBCs due to its generous tax incentives and membership of the European Union.

Cyprus joined the EU in May 2004 and this, combined with its strategic location at the crossroads with Europe, the Middle East, Africa and Asia, has made it a perfect location for international business companies. 

Top Benefits Of Registering A Cyprus Company:

  • 12.5% Corporate Tax
  • 0% on dividend income
  • Double Tax Treat network covering more than 60 Countries
  • No withholding tax on outgoing dividend, interest or royalty payments
  • Capital gain tax exemption
  • No succession or inheritance taxes
  • IP regime with tax rate of 2.5%

Top Benefits Of Obtaining A Ship Registration:

  • No tax on the operational or management profits on Cyprus-registered ships
  • No tax on income or dividends received from a ship management company
  • No capital gains tax on the sale, transfer, or shares of a ship-owning company
  • No estate duty imposed on inheritance
  • No income tax imposed on the wages of the officers or crews
  • Low tonnage tax based on gross tonnage
  • No stamp duties for ship mortgage deeds or security documentation
  • More than 43 countries have double tax treaties with Cyprus

Other benefits include:

  • Attractive, low-cost registration of a ship
  • Low operating cost for Cyprus-owned companies
  • European Union Flag
  • Cyprus has signed all international maritime conventions regarding pollution and safety
  • More than 23 countries have bilateral agreements with Cyprus for favored treatment in worldwide ports
  • Maritime offices around the globe
  • Highly-skilled professionals and infrastructure in place
  • White-listed high-quality flag recognized globally

Elsa Savva is an LLB graduate from the University of Wales. She has been admitted to the Cyprus Bar Association in 2018 and since then she has been practicing law with main focus on corporate, banking, commercial and contract law.

Elsa has been an Anti-Money Laundering Compliance Officer since 2018 which allowed her to gain an in depth knowledge and understanding of what is required in order to be fully compliant with the requirements imposed by the Regulatory Authorities. 


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