In order to comply with EU requirements, Cyprus has introduced the so-called International Business Company (IBC), which is the successor to the former off-shore regime. The IBC sector not only benefits from all the advantaged off-shore companies formerly enjoyed, but also allows for commercial activities within Cyprus .

The Cyprus IBC system offers, briefly summarized, the following:

•  With 1 January 2003 there is no distinction between local Companies and IBC's. Net profits of IBC's and international branches managed and controlled from Cyprus are taxed flat at 10%;

•  International business branches managed and controlled from abroad and international business partnerships are totally exempt from corporation and income tax;

•  No withholding tax on dividends;

•  No withholding tax on interest payments and royalties;

•  Profits earned from a permanent establishment outside Cyprus are fully exempt from Corporation Tax;

•  Dividends and profits from the sale of shares are tax exempt;

•  No capital gains tax except on sale of immovable estate situated in Cyprus ;

•  No VAT for offshore activities;

•  Large number of double tax treaties;

•  No time restrictions on carrying forward tax losses;

•  Group relief for utilization of tax losses;

•  No exchange control restrictions (bank accounts in any currency, anywhere in the world);

•  Confidenti ali ty and anonymity of owners is guaranteed by disclosure of personal details only to the Central Bank of Cyprus ;

•  Employees of foreign entities can obtain a work permit visa in Cyprus , if they work in executive positions or in positions where similar skills are not available within the Cyprus labour market;

the EU has reserved the right to review the Cyprus regime to this point. Contact Us Today

Contact Details
For further information and detailed quotes, please contact

ITOS Ltd
68 Stratigou Timayia
M. Frangos Court
5 th Floor, Office 501
Larnaca 6051
Cyprus
Emails: info@itoscyprus.com