• Company formation

Company formation

Cyprus is widely used by international businesses in order to maximise after tax returns, increase their effectiveness and optimise use of capital and financial resources.

Some of the advantages offered by Cyprus include:

  • A legal system structured on its English counterpart largely following English case law and the statutes regulating business matters and   procedures

  • No restriction on foreign ownership

  • Highly educated, skilled and motivated workforce

  • Low cost of setting up and maintaining actual substance due to relatively low wage and rent levels

  • Highly attractive non-dom regime exempting tax on dividends and interest earned by non-doms for the first 17 years after they move to Cyprus

  • Low rate of corporate tax, only 12.5 percent

  • Dividend income is exempt from tax in most cases

  • Profits generated from transactions in shares, bonds and other qualifying securities are exempt from tax

  • Extensive double tax treaty network with over 50 countries

  • No withholding tax on outward payments of dividends, interest and on all but Cyprus sourced royalties

  • Profits of Foreign Permanent Establishments (PE), are exempt from tax in most cases

  • No thin capitalisation rules

  • No Controlled Foreign Company (CFC) rules, thus exempting foreign income received

  • Flexible reorganisation rules and group relief provisions

People love to live and work in Cyprus because of its excellent weather, beautiful beaches, excellent food and its famous hospitality.

BDO’s legal team can assist you in incorporating your Cyprus company including drafting the Articles and shareholder agreements to meet your specific requirements.