The tax system in Cyprus can be very beneficial whether you are a property owner in Cyprus or a business. However when we are discussing businesses, Cyprus has so many reasons for registering and gaining from the low corporate taxation system on the island.
As mentioned in a previous article the corporate tax in Cyprus stands as low as 10% making it the lowest tax country in the European Union. The tax for shipping companies is 0% and for maritime management companies just 4.25%. Belize, British Virgin Islands and Seychelles should not be compared with Cyprus as they serve a different purpose. For comparison purposes only you can check that the corporate tax in other european countries stands as high as 40% for Greece, Germany, UK etc.
The tax system was designed in such a way in order to encourage foreign investment and due to the location and weather benefits, Cyprus and specifically Limassol has become a hotspot for international property buyers that combine business with the quality of the Cyprus lifestyle. The tax system offers the advantage for offshore companies to work in a stable environment with no surprises.
No tax is paid on profit made from trading securities, meaning that if the company registered in Cyprus trades the stock exchange of any country that will eventually profit from it, that profit will not be taxable.
As a plus there is full exemption from the Capital Gains tax that comes from immovable property held outside of Cyprus or even shares in companies that hold property outside Cyprus. The Cyprus companies can be used to hold real estate assets outside of the island of Cyprus with no capital gains tax for their company registered in Cyprus.
These facts show only but a fraction of what Cyprus can offer to the business oriented individual looking to mix business with pleasure with unimaginable benefits.