Why IBC

advantages

Why a Cyprus International Business Company (IBC)

In the early 1980’s, Cyprus started its efforts to become an International Business Centre. Consequently, Cyprus has entered into more than 40 bilateral agreements for the avoidance of Double Taxation. In 2004, Cyprus joined the European Union, having negotiated a favourable tax regime for its international business sector.

The combination of membership in the European Union, the Double Tax Treaties, and the favourable Tax regime has given Cyprus a competitive advantage for conducting ones international business through Cyprus.

Advantages offered by a Cyprus International Business Company

  • Apply the EU parent/subsidiary Directive in respect of dividends and interest
  • Dividends/interest received from non-EU companies governed by double tax treaty with favourable tax rules
  • Payments of dividends/interest/royalty commissions to non-resident is made without deduction of tax
  • No inheritance tax is payable on transfer of ownership of Cyprus Companies shares
  • Dividend income of a Cyprus company can be exempt from taxation
  • Corporate tax rate is at 10% which is the lowest in the European Union
  • No capital gain tax is payable on disposal of shares in subsidiary companies