The island has double-taxation treaties with over 60 other countries, including most of the high-tax countries in Western Europe, and many states in Central and Eastern Europe. As a low-tax centre, this makes Cyprus a particularly effective location for companies aimed at emerging markets. On top of this, the economy is strong and stable, and business costs are generally low. Since 2008 Cyprus adopted the Euro as it's national currency.
What are the main types of Cypriot Company Formation?
Most investors choose one of the following corporate formats:
- limited company
Main features of a limited company
no minimum share capital requirement
- number of shareholders must be between one and fifty
- company must have at least one director and one secretary
- annual accounts must be filed in Greek or English and audited
The island remains a business-friendly low-tax centre - with 12.5% corporation tax (increased from 10% in 2013) and low treaty withholding tax rates - but regulatory requirements are now on a par with many other EU states.
All companies are required to submit an annual return on the anniversary date of incorporation, with the first being due 18 months after incorporation. Annual financial statements must be submitted to the Registrar of Companies.
Cyprus does not offer particularly generous incentives for foreign investors, although the government may argue that its low-tax regime is a sufficient incentive in itself. However, various grants and loans are available for investors in certain high-tech and traditional economic sectors, and the Larnaca free trade zone offers exemption from customs charges.
The economy has powered ahead in recent years, creating near-full employment and raising the stakes for foreign companies seeking to attract good staff. Having said this, the labour pool is generally well educated and rates of pay are low compared to the EU average.
Please contact us and we will be pleased to discuss matters in greater detail.