Cyprus is not a tax heaven but an international Business Center. Its low corporation tax rate (12,5%) together with the extensive range of double tax treaties make Cyprus Republic one of the most attractive destinations for doing business. In addition being an equal member of the European Union, allows many corporations situated in other continents to set a permanent base in the European Union at the lowest cost. English widely spoken and the Legal, Judicial and Driving systems of the Republic are based on the UK’s since Cyprus was an English colony for 35 years. The country is geographically located at the crossroads between the Middle East, Africa and Europe and the service industry primarily and the tourism industry on a lesser degree are the main factors of the Cyprus economy.
A company is considered to be tax resident in Cyprus if its management and control is exercised in Cyprus. Cyprus tax resident companies are taxed on their worldwide income. Non tax resident companies are taxed only on income generated in Cyprus.
Corporation tax in Cyprus is applicable at the prevailing rate of 12.5%.