While Cyprus is not a classic offshore jurisdiction, it remains a popular destination for businesses from all over the world. This is due to significant benefits created for offshore companies in Cyprus:
- Cyprus offshore is the jurisdiction imposing the lowest income tax in the European Union. The tax rate is only 10%
- access to EU market which is made possible by businesses paying VAT
- agreements aimed at helping businesses to avoid double taxation
- Cyprus offshore company is considered to be reputable and credible, therefore attracting more clients and partners
- Cypriot legislation makes it possible to avoid double taxation. Cyprus signed appropriate agreements with 18 countries
Given these benefits, the only drawback for companies in Cyprus is a 10% tax which is significantly higher compared to other offshore jurisdictions.