Cyprus is a well-recognized and established center for International Business. With the entry of Cyprus to the European Union on 1st May 2004 and the introduction of the new Tax Law, Cyprus became a law tax destination.

With 4 double tax treaties with other countries, Cyprus can offer significant advantages and possibilities of international tax planning for the eliminations of double taxation.

The main provisions of the Tax Law include the following:

• 10% rate of corporation tax on business profits
• Zero taxation on company income from dividends received
• No further taxation on payment of dividends to non-resident shareholders
• No capital gains tax on profit from the disposal of immovable property not situated in Cyprus
• 50% exemption from taxation of interest received provided this is not closely related with ordinary course of business
• Utilization against future taxable profit and indefinite carry forward of tax losses
• Availability of group relief of tax losses (based on certain conditions)
• Deduction of Wear and Tear allowances for use of business assets
• Use of double tax treaties and unilateral Tax Law provisions for the elimination of double taxation
• No income tax on the profits earned of dividends paid by a Cyprus shipping company which owns ships under the Cyprus flag and operates in international waters
• Tax free amount of around EURO 17.000 for income of private individuals resident in Cyprus