CYPRUS
Cyprus, despite the strong competition, has established itself as a reputable place to conduct international business. Apart from the tax incentives, there are a number of other factors that make Cyprus an attractive venue for the establishment of a company.

Non-tax advantages:

• Anonymity of the beneficial owners of a company
• Not a tax haven but a tax incentive country
• Reliable banking institutions
• Excellent telecommunications system
• Frequent air connections
• Strategic geographical position
• English is widely spoken
• Skilled professional staff at all levels
• Availability of foreign schools
• Crime free environment
• Operating costs are very low compared to other European countries
• Cyprus companies enjoy the reputation and privileges attached to a European company
• No exchange control restrictions
• Good climate.

Tax advantages

• Lowest corporate tax rate in the European Union
• Sophisticated network of double taxation treaties
• Existing IBCs can continue to be taxed at 4,25% until the year 2005
• No withholding of taxes for payment of dividends to non residents
• Holding companies if properly structured can escape taxation all together
• Non resident companies are taxed only on the income derived in Cyprus