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Why Cyprus
Cyprus is an eastern Mediterranean island strategically
located at the crossroads of three continents; Europe, Asia, and Africa. A
European Union member since May 1, 2004 and a member of the Euro-Zone since
January 1, 2008 Cyprus also enjoys excellent business relations and flight
connections with the Middle East. Cyprus enjoys a strong economy despite the
recent worldwide economic downturn and its growth was less affected than most
thanks to conservative government fiscal management and industry focus on
financial services and tourism. The country enjoys low inflation and low
unemployment rates when compared to the EU average.
With the lowest corporate tax rate in the European Union (EU)
at only 10%, the island is an ideal jurisdiction for Holding Companies.
Moreover, it has over 40 bilateral tax treaties, including with the United
States. Cyprus has no withholding tax imposed on dividend income, interest, or
royalty payments effected to non-Cypriot beneficiaries. Profits from overseas
permanent establishments are tax exempt.
The banking, accounting, legal, and financial services are
extremely efficient and one of the strong points of the economy. The labor force
is largely multilingual and highly qualified and the labor costs are low
compared to the EU average. Cyprus has an advanced telecommunications network
and infrastructure, as well as, a wide network of air-routes offering excellent
connections with Europe, Africa, and Asia, as well as modern ports and
first-rate sea connectivity.
Cyprus ranks among the 10 leading maritime nations in the
world and is a highly reputable international shipping center with a merchant
fleet exceeding 21 million gross tonnage (accounting for 16% of the EU fleet)
and nearly 2000 vessels. It constitutes one of the largest ship-management
centers in the world with around 50 ship-management companies and marine-related
foreign enterprises that conduct their international activities in the country.
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