Cyprus offers one of the most attractive tax systems in Europe. a) The country provides a simplified, effective and transparent tax regime that is fully compliant with the EU laws and regulations. b) Dividend income, profits from overseas permanent establishments and profits from the sale of securities are exempt from tax. Also, there is no withholding tax on dividend, interest and royalties paid from Cyprus. c) Most international transactions are exempt from VAT. d) Cyprus has a network of double taxation agreements with more than 48 countries and bilateral investment agreements with 19 countries. Additionally, Cyprus has access to EU Directives that focus on reducing or eliminating foreign withholding taxes.

For more information visit the Ministry of Finance Double Taxation Agreements Section (
Human Talent: 2013 statistics demonstrate that 39,2% of Cypriots in the 25 – 64 age group have acquired tertiary education – higher than the EU28 average of 28,63% and one of the highest percentage in the world.
Value for Money: Cyprus is a dynamic business centre that offers relatively lower operating costs while also providing top quality services, including accounting, auditing, tax, business administration, legal, investment and funds management.
Legal Framework: The legal system is based on the U.K. Common Law principles and aligned with the EU laws and regulations (Acqui Communautaire). Cyprus provides quality legal services in areas such as international law, corporate administration and management services. Most large legal firms are affiliated or collaborate with international law firms. Well-developed Infrastructure: Cyprus has a robust telecommunications system, two international airports (Larnaca, Paphos) and two ports (Limassol, Larnaca). Furthermore, the relatively small distances make the island a very friendly and easy to get around business location.
Ease of Doing Business: Cyprus has developed into an international quality business centre that offers specialized services and rewarding business opportunities catering for the diverse needs of international investors, enhancing the ease of doing  business. The World Bank’s Doing Business Report 2014 ranked Cyprus 39th out of 189 Economies and 16 out of the EU28 for the ease of doing business. Forbes Magazine 2012 Best Countries for Doing Business report ranked Cyprus 25th out of 144 countries. In addition to this, simplified administrative procedures for acquiring necessary permits - company registration, may be completed within 4 days.
Quality of Life: Cyprus offers a wonderful environment with a very comfortable standard of living. Living and working in Cyprus is combined with fabulous weather, beautiful nature, art and culture, safety, security, and above all, hospitable people. Cyprus combines the international competitive business environment with a pleasurable and balanced way of life. The UNDP Human Development Index Report 2013 ranked Cyprus 31st out of 187 countries for the quality of life. The Knight Frank Report ranked Cyprus on the Fall of 2013 as the 5th better place for Lifestyle among major European Cities and other competitive destinations. The report was also published in the Financial Times on October 2013. Additionally, Cyprus stands out with the cleanest sea waters in Europe according to the European Environment Agency.
Residency and Citizenship: Non EU residents have the opportunity to acquire a permanent residency permit with the purchase of a private home of at least 300,000 EUR and deposits of minimum 30,000 EUR in a local bank for three years. Non EU residents can acquire the Cypriot nationality with: investment of minimum 2M EUR in a state company and 500,000 EUR investment in the Research and Technology fund.
Source: Cyprus Investment Promotion Agency