Why Cyprus

IS THE IDEAL PLACE

Cyprus offers many benefits to corporations, trusts and shipping companies that establish their operations in the country. These benefits arise mainly from the low tax regime, the high quality of corporate services (banking, financial, legal) and the credibility/stability of being a member-state of the European Union as well as a member of the Euro-zone.

The top ten reasons for investing in Cyprus are described in detailed by the Cyprus Investment Promotion Agency and outlined below:

European Union Member State

One of the lowest EU corporate tax rate

PKP Group of Companies Why Cyprus - Macroeconomic stability, successful economic performance

Macroeconomic stability with successful economic performance

FDI track record

Efficient legal, accounting and banking services

PKP Group of Companies Why Cyprus - Cyprus map

Strategic Location Europe’s Middle Eastern Outpost

Advanced telecommunications network and infrastructure

Highly qualified and multilingual labour force

Reputable International Shipping Centre

Living and working on the island for all seasons

Low tax Regime

Is our advandage

The Cyprus government (and all the relevant stakeholders) have a long-standing commitment to continuously improve the business environment of international companies with Cyprus incorporation, and therefore enhance the competitiveness of Cyprus as an international business centre. Tax advantages are at the core of this strategy and these are summarised below:

One of the lowest corporate tax rate in the European Union of 12.5%.

Exemption from Tax for dividend income, profits from overseas permanent establishments and dividend.

No withholding Tax on dividend income, interest and royalties paid from Cyprus.

Income and gains of a Cyprus International Trust, derived from sources outside Cyprus are exempt from any tax imposed in Cyprus under certain conditions.

Dividends, interest or other income received by a Trust from a Cyprus international business company are not subject to tax nor are they subject to withholding tax.

No capital gains tax is charged on the disposal of assets of an international Trust.

Exemption from taxation in the case of an alien who creates an International Trust in Cyprus and retires in Cyprus under certain conditions.

No tax is imposed on profits from the operation of Cypriot registered vessels, or on dividends received from a ship-owning company.

Income arising from ship management activities is subject to tax at 4,25%. Alternatively, a ship-management company may choose to pay at a rate equal to 25% of tonnage tax rates of vessels under management if deemed more beneficial.

A unilateral foreign tax credit is granted to any income which has already been paid abroad and is taxable in Cyprus.

Double tax treaties with the following countries ensure that the income is only taxed once:

Armenia, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Kyrgyzstan, Lebanon, Malta, Mauritius, Moldova, Montenegro, Norway, Poland, Qatar, Romania, Russia, San Marino, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Sweden, Syria, Tajikistan, Thailand, Ukraine, United Kingdom, United States of America and Uzbekistan.

The information depicted above is intended for guidance only and may not be up to date. For details concerning the full benefits that may arise through Cyprus incorporation please contact one of our professional advisors.

P.K.P. Group of Companies

25 Charalambou Patsidi, PKP House, 1st Floor

6042 Larnaca, Cyprus