It's economic and regulatory regimes follow ... the EU and enjoys business advantages due to its geographical position.
Cyprus is a low-tax jurisdiction. It's economic and regulatory regimes follow the code of conduct for business taxation, comply with the requirements of the OECD and adopt EU directives. Subsequent to its accession in the EU in May 2004 Cyprus companies are no longer considered as being offshore. The tax rate is 10%, the lowest in the EU, benefiting from various advantageous EU directives. A further crucial advantage following Cyprus' accession is that it offers an exceptional opportunity for non-EU companies to establish themselves at the EU market through Cyprus.
Furthermore, the old distinction between local and international companies was abolished in 2003 and the corporate tax rate is now uniform (10%). Also, foreign investors no longer need approval from the Central Bank of Cyprus to invest and do business in Cyprus. This has enhanced the flow of foreign investors in Cyprus because now foreign investors are on equal terms with local investors. One of the practical aspects of the liberalisation is that foreigners register companies in Cyprus and automatically enter the EU market of over 500 million consumers.
It is possible to have the registration of a private limited company within a few days, or even a few hours as the "shelf company" concept is readily available everywhere. A crucial point to note is that companies in Cyprus have substance and are companies like all other companies in the EU.
The cost in Cyprus is minimal compared to in other low-tax jurisdictions in Europe and more importantly comparable to the tax advantages an investor can derive out of Cyprus. Despite the ongoing political problems, they do not have any bearing whatsoever or direct effect on businesses. Cyprus continues to experience significant growth especially in the business sector, due to its domestic political stability and economic policy.
Cyprus' geographical location is one of the prime factors that makes it one of the world's leading business centres. Cyprus lies in the middle of three continents: Asia, Africa, and Europe. Historically, politically and culturally Cyprus is closely aligned with Europe, is a member of the EU and enjoys business advantages due to its geographical position and excellent relations with its neighbours.
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