For the individual who wants to open a company or companies there are many areas that are of great importance. First, there is the possibility of early tax rulings and no capital gains tax is charged to the individual or company.

In certain countries of the world, there are taxes that are imposed on a person’s net worth. This means that the higher the net worth of a person or company, the higher the taxation. In certain cases, this often leads to tax fraud, as the individual or company may see this as an extreme form of taxation. In other cases, people simply omit certain aspects of their wealth that are considered taxable in order to avoid paying taxes. In Cyprus, this is removed because net worth taxation is non-existent in this country. This is definitely a great incentive for both individuals and organizations, whether local or international. It should be noted, however, that this tax exemption only applies to real estate in Cyprus.

In Cyprus, European rules on taxation apply. This is beneficial for the individual or the company because one can take advantage of this double taxation treaty available in Cyprus to reduce their taxes to pay. Tax losses incurred by the company are also carried forward indefinitely and can be delivered as group relief. This country also charges low taxes for the establishment of companies within its jurisdiction. Interest deduction for borrowing costs is provided for all offshore businesses. Unilateral tax relief is granted to all companies in Cyprus. Corresponds to all taxes abroad that the company has incurred when establishing itself in this country.

This is provided regardless of the absence of the double taxation treaty. There is also a very low fee for the provision of financial and professional services in this country compared to charges in the member countries of the European Union. This applies to any fees from lawyers and/or financial institutions that have been used during this process or for any independent valuations that have been carried out on behalf of the organization in Cyprus. This country also offers low personal tax rates that act as an additional incentive for the individual to open any type of business.

This taxation reaches a maximum of thirty percent (30%) for income over 20,000 Cypriot euros. There are also low social security contributions that the individual is required by law to pay to the government at regular intervals, as is the case in every other country in the world. This type of insurance is usually calculated at 6.3% of people’s gross salary. All of these tax incentives are both local and international and allow Cyprus companies to operate in a very conducive environment that is almost unrivaled in the European Union and indeed anywhere else in the world.