What benefits do residents in Cyprus enjoy?
Situated in the Eastern Mediterranean, the island of Cyprus boasts a strategic geographical location at the hub of three continents; Europe, Asia and Africa. The population of the Republic of Cyprus currently stands at approximately 850,000 with the majority residing in the four main cities: Nicosia, Limassol, Larnaca and Paphos.
As a former British Colony, English is widely spoken throughout the island with 80% of the population being relatively fluent. The legal system is structured on its English counterpart and is based on common law with many Cypriot Lawyers being trained in the UK.
The Republic of Cyprus is a free market economy providing vast opportunities for international business and efficient tax planning. With first class legal and accounting services, excellent air links with Europe, the Middle East and Asia, Cyprus is a great location to conduct business.
Cyprus is a leader amongst international tax planning jurisdictions and registration of a company in Cyprus is the ideal mechanism for protecting a business. In the last decade the role of Cyprus in international tax planning has increased dramatically.
The Cypriot economy has faced challenges as a result of the economic and banking crisis, however, it is now on a recovery path and it is recording positive growth rates.
Cyprus offers an attractive and efficient tax regime, which offers residents the following benefits:
• One of the lowest corporate tax rates in Europe at 12.5%.
• An ever-growing network of double tax treaties (DTTs).
• Tax exemption of dividend income and the profit on sale of shares.
• VAT rates for aircrafts and boats as low as 3.25%
• Overseas pensions may be taxed at 5%.
• VAT rate for purchasing property can be as low as 5%.
• No transfer fees for property transfers if the transaction is subject to VAT and, if not, a 50% reduction of transfer fees for all transfers.
• No capital gains tax (CGT) from the sale of properties if purchase by the end of 2016.
Granting Cyprus Citizenship to Investors by Exception
You can enjoy these benefits too, even if you do not hold an EU passport! Individuals who satisfy one of the economic criteria personally or through the company where they are Company Shareholders, Managers or Business Owners of the companies meeting one of the economic criteria may apply for Cyprus Citizenship through Naturalisation by Exception. Eltoma can help you with this process, click here to learn more about this program.
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