Cyprus is an attractive destination to form an IBC. Cyprus in general is a low tax jurisdiction. Firstly, there is no withholding tax. Secondly, the corporate tax companies need to pay on their international income is 12,50%. Thirdly, there is no tax on the transfer of shares and fourthly Cyprus accepts invoices from offshore companies and this is rare in the EU.
Apart from these, there are more advantages such as economical stability, corporate laws which are based on the English Companies Act and harmonised with EU corporate laws, low incorporation fees and a quick incorporation process. Additionally, it has an efficient network of lawyers, accountants and banks. Cyprus is at the crossroad of Europe, the Middle East and Africa. Moreover, Cyprus has numerous Double Taxation Agreements, and is also currently negotiating more.
