Cyprus has established itself as a reputable and prime international business and financial centre and its numerous offered advantages, have brought Cyprus to the forefront of international financial centers. The entry of Cyprus to the European Union and the new tax reform gives added value to Cyprus Companies as there is no distinction between local Companies and International business companies (IBC’S). All companies have a European status and still enjoy low tax rates. This reform enhances Cyprus position as an international financial centre as it remains a right location for investments to and from other European Union countries, Russia, CIS and many other locations as Cyprus based companies enjoy the lowest tax regime in the European Union. The Cyprus taxation regime applicable from 1 January 2003, is 10% for all companies.
Cyprus, a full member of the European Union and member of the Euro zone, is positioned at the crossroads of Europe, the Middle East and North Africa, along with advanced legal, accounting, banking, professional and telecommunications services, highly skilled and multilingual workforce and personnel, and convenient year around flight connections, which naturally make the island a hub for business and trade.
Further to several initiatives aimed at improving the corporate environment and the investment infrastructure and in the background of significant potentials in enhancing the energy sector of the island, the global ranking of Cyprus in “Doing Business 2012” has improved by 9 ranks. Cyprus is now placed among the best 40 places globally for starting a business. The efficiency of doing business is ranked among 183 economies and by reference to key indicators, such as time, cost and procedure. These are benchmarked against regional and high-income economy averages.
Cyprus is ranked on the 33rd place in regard to starting a new business (incorporating a company). As to investment protection, Cyprus has managed to dramatically improve its position, climbing from the 93rd place in 2011 to the 29th place in 2012. Cyprus has also improved its ranking on other fields, such as transparency and disclosure indicators, directors liability index, shareholders’ access to justice and other. Considering taxation, Cyprus is among the 40 best places globally, by reference to direct payment, percentage, labour tax and contributions and other mandatory contributions. Cyprus has also achieved important rankings, including cross border trading