HAVE A LOOK AT CYPRUS

WHAT IS CYPRUS-WHERE IS CYPRUS-WHY CYPRUS:

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• Cyprus is wonderful island, with beautiful beaches and sceneric mountains. A mild climate and a stable democracy, all blending together to create a magic that everyone wants to share. Cyprus is smack in the middle of the Meditteranean Sea, making Cyprus, the apple of contention for many powers for many thousands of years.

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• THE GOVERNMENT OF CYPRUS: The Government of CYPRUS  is a presidential democracy with an elected President and an elected Parliement. The President appoints the  ministers. The term of office of the President is 5 years and so it is the term of office for the Cyprus MPs. Cyprus has 4 major political parties, which dominate the political life of the country. Major towns of Cyprus, have mayors, while smaller towns and villages have Councils. The Government of Cyprus exercises all the powers given it by the 1960 Constitution which is the source of the Cyprus Law and Constitutional rights of the Cypriot nation. The Cyprus Government is a democratic government which takes care to protect the human rights of all its citizens, be they indeginous, or aliens.

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•   CYPRUS  CAPITAL :  The Capital of Cyprus is Nicosia. It`s located more or less in the middle of Cyprus and it`s population is  about 130 000  people. In Nicosia are situated most of the Cyprus Government ministries and other Government services, and most of the foreign embassies and consulates. The USA, China, Russia, the UK, France, Italy, Gernamy, and dozens of other major and not so major countries all have embassies in Cyprus. The Capital of Cyprus is the only divided Capital in Europe, since the bloody invasion and occupation of Cyprus by the Turks in 1974. The Capital of Cyprus is modern city which has to offer a lot to the visitor. Until now the main financial activities of the country were consentrated in Nicosia. However now things are changing rapidly, because Larnaka now with the new supermodern International Airport, the huge GOLFCOURSE being built, the 1 billion Marina, in which there going to be Hotels, the Municipal Palace, Luxury Villas, Luxury Apartments etc, the completion of the Sea Front, a major project taking it to the vicinity of the Airport, a Seven Star Hotel smack in the middlle of town, a huge 700 acre thematic park a few kilometers from the centre of Larnaka, made Larnaka much more attractive. Foreign businessmen now prefer Larnaka, and because of the dense and inhuman traffic of Nicosia, and the high costs or running their business in Nicosia.

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• CYPRUS  ECONOMY : The Economy of Cyprus has been growing very fast in the last five years. Cyprus Economy has stagnated for the last two years because of the Global Economic Crisis like many other  much larger economies. The  Cyprus Economy`s main activities are centred around agriculture, light industry, tourism and services. The CYPRUS FLEET, is one of the biggest in the World ! However now withe discovery of the BIGGEST GAS DEPOSITS IN THE WORLD, Cyprus Economy is looking forward to a bright future, and it will not be an exaggeration to say that Cyprus could become the Saudi Arabia of the Meditteranean! Already relevant agreements have been signed with Israel, Syria, Egypt and soon with Greece for the delienatiion of each Country`s rights, and for the extraction of the gas in partnership with ISRAEL. Many huge International energy GIANTS, have applied to the Cyprus Government for acquiring the rights to one or more  of the sea sectors. Cyprus Economy has a bright future.

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•   CYPRUS CURRENCY-CYPRUS MONEY-EXCHANGE RATES : The Cyprus Currency today is the Euro. Cyprus joine the Euro zone in 2008. That is great advantage not only for the Cyprus people but for the visitors and for the businessment, because of all those well known reasons. Before joining the Euro, which today is the official Cyprus Currency, the Cyprus Money was the Cyprus Pound. The Pound was left to Cyprus by the British after independence in 1960. It was divided into 20 shillings and each shilling was divided into ten pennys. Cyprus Money went through various stages. However Cyprus Money and the Cyprus Pound was very steady and it was accepted as an international trading currency in many countries including Syria, Egypt, Greece, Turkey, and many others. THE EXCHANGE RATES in Cyprus are secured according to the international rates. So a visitor or a businessman looking to exchange some other currency into Euro in Cyprus, will be treated fairly and will be in a position to secure  EXCHANGE RATES equal if not better to those of any other country. Cyprus Banks are of the most advanced in the World and always offer Exchange Rates, and other services at very reasonable costs.

• In Cyprus there are about 800.000 people only. Most of them are Greek Cypriots, about 60% , then there are about 20% Turkish Cypriots, 7% British Nationals, 6% Russian Nationals and the rest are various races, all living together in harmony without any racial discrimination or conflict.

• The crime rate is very low and it evolves mostly in offences against property. The Legal System is very fast and concise and the Courts are just and unbiased. Everyone feels very safe in Cyprus. You can leave the keys on your car lock and nobody will try to take it.

• Children are safe to play alone in the streets. There hasn’t been a child abduction in Cyprus for many years.

• The educational system is very modern and everyone in Cyprus has the opportunity to get an education.

• Cyprus has a modern University, of the highest standards, with thousands of students. Many students come from as far as China, India, Europe and the U.S.

• The illiteracy rate in Cyprus is one of the lowest in the world.

• The local language is GREEK, but English and Turkish is widely spoken. There are schools for all kinds of taste to learn Greek and English and many other languages.

• Cyprus has one of the highest rates of University educated people in the world.

• The cultural heritage of Cyprus comes from ancient Greece. That is why Cyprus has a lot of traditions in Religion, Dancing, Poetry, Food, Hospitality, Sea Sports, a lot of ancient monuments, etc.

• The Religion in Cyprus is Orthodox Christianity for the Greek Cypriots, but many other religions, such as Muslims, Catholics, Buddhists, etc exist in harmony in Cyprus without any religious conflict and with everybody having a place where to exercise their religious rituals.

• A whole community of Russians now resides permanently in Cyprus and they have built their own church, radio station, TV station, schools, newspapers, magazines, shops etc.

• In Larnaca, many Russians have invested in immovable properties and it is believed that a huge Disney Land, which will cost over 1.5 million Euros, will be constructed soon in Larnaca by Russian businessmen!

• QATAR is now investing billions in Cyprus, in majestic projects, and many other Arab countries are thinking of investing in Cyprus.

• OIL AND GAS FIELDS, have been lately discovered in Cyprus, offshore on the south side and it has signed agreements of cooperation with many neighboring countries. Soon billions will be invested in Cyprus by huge international companies for the extraction of the gas and oil, and of course for purchasing and renting buildings and offices in all towns of Cyprus.

• Cyprus is one of the biggest islands in the Mediterranean Sea. It is situated in the middle of the Mediterranean and is a gate to Europe, the Balkans, Africa and Asia.  It has a coastal line of almost nine hundred kilometers. It gained its independence from the British in 1960, and since then it has a steady democratic government, with a President and a House of Parliament.

• Its legal system is based on the British legal system which is one of the best in the world. It is very extensive, solid, fair and predictable. In the Cyprus courts justice is dealt fairly for all litigants independently of politics or other irrelevant factors. The Cyprus legislation is modern, concise, and precise and covers all the aspects of modern society, trade, business, administration and so on, so that you feel secure in doing business and establishing your company in Cyprus.
  
• Larnaca is one of the biggest and most beautiful towns in Cyprus with a smooth coastline and plenty of recreational places. It is only half an hour away from the capital and other business destinations. Larnaca is the gateway to Cyprus with its super modern airport which is a new and very busy airport 5 minutes from the centre of the town. From the Larnaca International Airport you can get a flight very easily to destinations for all over the world. 

• The harbor will be turned into a most modern harbor for cruise liners, capable of hosting the biggest liners, and giving Larnaca an advantage over many other European cities.

• Recently the republic of Cyprus has adopted a free market economy which gives you immense opportunities for international business and of course for your financial and tax planning.

• You will be working in a fully professional environment with all facilities and high technology at your disposal. The Cyprus banking system is highly developed and very fast. In fact other developing countries have called on the big Cyprus banks to advise them to adopt the same banking system as the Cyprus system.

• Our telecommunications are
•  as much developed as any other European country. It offers you all the latest high technology and an extensive and very fast internet.

•  THERE ARE AIRNLINKS  from the Larnaka International Airport, which is a brand new super modern airport, to all destinations in the world, every day, making it simple, fast and cheap to travel to and from Cyprus, anytime without any fuss or delay.

WHAT ARE THE MAIN TAX AND OTHER

 ADVANTAGES OF THE CYPRUS COMPANY 

Under the current tax legislation, Cyprus has the lowest corporate tax rate in Europe of 10% so that its importance as an international financial jurisdiction is greatly enhanced.

 There is no longer a differentiation in the tax treatment of local companies and International Business Companies, as a single corporation tax rate is applicable for all companies. Cyprus clearly stands out as a respected tax - incentive EU country and is free from the suspicions usually associated with "tax-havens" which have zero tax which makes it difficult for you to plan your tax and other corporate matters like opening a bank account in the EU and even in other countries.

A Cyprus International Business Company (IBC) will pay a tax of 10% on its net profits if it is a Cyprus resident. An IBC is resident if its management and control is in Cyprus. Management and control is usually determined by the place of residence of the majority of the directors and the place where board meetings take place. Full advantage of the Cyprus double-tax treaty network can be obtained by resident IBCs.

·         An IBC will pay zero tax if it is not considered to be resident in Cyprus. This will be the case when its management and control is outside Cyprus. A Cyprus IBC is considered to tax resident in Cyprus if the Directors are Cypriots, resident in Cyprus.

·         A non-resident IBC will not be able to obtain a Cyprus Tax residence certificate and therefore cannot utilize the double-tax treaty network.

·         There is no withholding tax on payment of dividends, interest and royalties by an IBC to non-resident individuals or companies.

·         Dividend income received in Cyprus by an IBC is wholly exempt from tax in Cyprus (under certain conditions).

·         Profits earned from a permanent establishment abroad are fully exempt from corporation tax.

·         Profits from the disposal of shares are not taxable for all Cyprus tax residents.

·         50% of interest received is exempted unless the interest arises in the ordinary course of business (e.g. interest on overdue debtor balances).

·         There is no restriction in the carry-forward of tax losses. They can be carried forward indefinitely to be set-off against future profits.

·         Group relief is available whereby losses from a company can be set off against taxable profits of other companies in the same group.

·         Re-organizations, amalgamations, mergers and acquisitions of companies can be effected without any tax implications.

·         Exemption from capital gains tax (except on sale of immoveable property situated in Cyprus).

·         No exchange control restrictions - an IBC can open a bank account in any currency in Cyprus and abroad. Free flow of money in and out of Cyprus.

·         Cyprus has over 40 Double Tax Treaty agreements which apply to over 40 countries and which can be exploited to minimize tax.

·         Confidentiality and anonymity of beneficial owners is safeguarded (true identity is only disclosed to local banks, if a local account is opened information is not disclosed to any third party or to other countries, except in the case of properly authorized criminal investigation (drugs, terrorism, etc.).

      20  05 2011