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Tax Planning & Advising
With Cyprus accession into the European Union, its tax legislation has changed in order to come in line with the European Union law and the European Union code of conduct. The new regime abides by Cyprus' commitment to the OECD to eliminate harmful tax competition initiatives against harmful tax practices. Thus as from the 1st of January 2003 the tax system in Cyprus underwent some major reforms, nevertheless making Cyprus more attractive rather than less attractive for establishing a base for international business.
Cyprus has an advanced tax planning culture as it combines the low or, in certain cases, zero tax rates and the extensive double taxation treaties network. The continued efforts of the government of Cyprus to expand and enhance its network of double taxation agreements by way of negotiations with new countries and update of existing tax treaties has turned Cypriot companies into an essential part in large international structures.
The lowest fixed corporate tax rate (10%) in the European Union and a very competitive V.A.T. rate (15%) together with all the additional benefits provided by the Cyprus tax law in relation to Dividends, Interest and Royalties make Cyprus companies more attractive in the following tax planning structures:
- Holding Company
- Trust Company
- Finance Vehicle Company in order to finance other corporate entities
- Trading Company
- Royalty Company
- International investment schemes
Our team of tax experts advise clients on complex issues in the area of taxation, focusing on the optimal tax structures, while serving the clients operating needs.