Cyprus is organised as a Republic with a presidential system of government influenced by the British rule over the island from 1878. An independent Republic since 1960, its Northern part was invaded by Turkey in 1974 to protect its Muslim population, creating a southward flow of some 200.000 Greek refugees as well as a wave of emigration of some 50.000 Muslims. This military occupation still persists. Britain maintains an important military presence in the form of sovereign bases in the South.
The island is situated about 34.3 to 35.3 degrees North, 32.1 to 34.4 degree East. Its total surface of 9.251 square kilometers is divided into the Turkish occupied zone of about 3.420 (37 %) square kilometers and the independent Republic’s surface of about 5.830 square kilometers. Population in the Greek part is about 790.000 (2008), consisting of about 80 % Greek Cypriots, 3 % Turkish Cypriots, 1 % minorities (Maronites, Armenians, Latins), and 16 % foreigners. Greek and Turkish are the official languages; English is very widely spoken and generally acknowledged as (international) business language. The main urban areas are Lefkosia (Nicosia, Capital; 310.000), Lemesos (Limassol; 230.000), Larnaka/Famagusta (175.000), and Paphos (75.000). The countryside holds only about 10 % of the overall population.
The legal system remains basing on English common law. Cyprus has a highly competitive tax legislation. The local currency is the Euro.
The continuing confidence in Cyprus’ political system, its sustained importance as a financial, trading, services and shipping center and the quality of its respective industries, favorable double taxation treaties, the clear legal tradition and internal political stability, very good accessibility, infrastructure and communications as well as Cyprus’ EU and EMU membership make it a highly interesting option as a corporate operation basis
Reliable stability plus onshore advantage in insecure environment (Turkey, Neareast) as compared to several classical offshore jurisdictions.
Common law and English legal tradition applicable also to corporate regulations (U.K. 1948 Companies Act).
Signatory of the Hague Convention (apostillisation of documents).
EU member (May 1, 2004)
Greek, Turkish; English widely spoken
Anonymity of corporate ownership attainable through permitted nominee structures; no statutory disclosure of beneficial ownership.
Good access by air particularly from Europe and from the Near and Middle.
East Telephone, fax, internet, and courier services are excellent. Couriers arrive in Europe latest after two days.
Member of EMU (Euro) (January 1, 2008)
Reasonable incorporation and annual costs in view of the overall site advantages
Non-resident Companies (management and control abroad) without Cyprus turnover fully tax-exempt. 10 percent on Resident Company profits; 15/20 percent withholding tax on interest/dividend revenues in certain cases. No tax on dividends, royalties or interest for recipients abroad. Holding companies actually taxfree.
Accounting, auditing and reporting requirements for Cyprus companies eliminate problems of business transactions with rigidly fiscalised countries, allowing formal proof of collection, accounting, and tax declaration/exemption.
Country |
Dividends |
Interest |
Royalties |
| Armenia |
0/5 |
5 |
5 |
| Austria |
10 |
0 |
0 |
| Belarus |
10/15 |
5 |
5 |
| Belgium |
10/15 |
10 |
0 |
| Bulgaria |
5/10 |
7 |
10 |
| Canada |
15 |
0/15 |
0/10 |
| China |
10 |
10 |
10 |
| CIS except Kazakhstan and Turkmenistan (Azerbaijan, Kyrgyzstan, Tajikistan, Ukraine, Uzbekistan) |
0 |
0 |
0 |
| Czech Republic |
0/5 |
0 |
10 |
| Denmark |
0/15 |
0 |
0 |
| Egypt |
15 |
15 |
10 |
| France |
10/15 |
0/10 |
0/5 |
| Germany |
5/15 |
0/10 |
0 |
| Greece |
25 |
10 |
0/5 |
| Hungary |
0/5/15 |
0/10 |
0 |
| India |
10/15 |
10 |
15 |
| Ireland |
0 |
0 |
0/5 |
| Italy |
0/15 |
10 |
0 |
| Kuwait |
10 |
0/10 |
0/5 |
| Lebanon |
max 5 |
max 5 |
0 |
| Malta |
0/15 |
0/10 |
10 |
| Mauritius |
0 |
0 |
0 |
| Moldova |
5/10 |
5 |
5 |
| Norway |
0/5 |
0/25 |
0 |
| Poland |
10 |
0/10 |
5 |
| Qatar |
0 |
0 |
5 |
| Romania |
10 |
0/10 |
0/5 |
| Russian Federation |
5/10 |
0 |
0 |
| San Marino |
0 |
0 |
0 |
| Seychelles |
0 |
0 |
5 |
| Singapore |
0 |
10 |
10 |
| Slovakia |
10 |
0/10 |
0/5 |
| Slovenia |
5 |
5 |
5 |
| South Africa |
0 |
0 |
0 |
| Spain |
0/5 |
0 |
0 |
| Sweden |
5/15 |
0/10 |
0 |
| Syria |
0/15 |
0/10 |
10/15 |
| Thailand |
10 |
10/15 |
5/10/15 |
| United Arab Emirates | |||
| United Kingdom |
0/15 |
10 |
0/5 |
| USA |
0/5/15 |
0/10 |
0 |
| Yugoslavia (former; Montenegro, Serbia) |
10 |
10 |
10 |
− minimum authorised capital recommended EUR 5.000
− minimum issued capital recommended EUR 1.000
− increase or reduction of share capital by Amendment of Memorandum of Association possible; change of share capital must be filed
− registered shares required
− a share register has to be maintained by the secretary of the company
− share transfers must be registered
− minimum one shareholder; public record
− Nominee Shareholders permitted
− Corporate shareholders permitted; due diligence procedures required.
− Minimum one director, filed and of public record.
− Appointee and Corporate Directors permitted.
− Board meetings anywhere in the world permitted, also resolutions by telephone or mail (to be recorded and filed with the secretary thereafter).
− Secretary required.
− Local registered office required.
− Annual returns including annual accounts in Greek.
− Assemblies anywhere in the world; unanimous resolu-tions in writing permitted (to be recorded and filed with the secretary thereafter).
− General powers of attorney permitted
− Public register of shareholders, directors and secretary
− Beneficial owners remain undisclosed
− Limited liability to be denoted by Limited
− corporate seal (stamp) compulsory
− duplicate seal may be used outside Cyprus
− accounting, auditing and reporting compulsory
− Residents: 10 % tax on corporate profits, in defined cases 20 % on dividends/15 % on interest received
− Non-resident companies: tax-exempt except for income generated in Cyprus