After its accession to the European Union in 2004, Cyprus has dismantled most of its investment restrictions making it a very favorable ground for foreign investors. Taking advantage of the tax benefits and investment opportunities found in the region, many international investors have considered the cyprus company formation. Cyprus ranks as among the world leaders in attracting direct foreign investments with the flat corporate taxes imposed on the profits gained on the investments, Cyprus maintains its position as the lowest tax rate in the European Region. This provides a very profitable opportunity for foreign investments to continue with the Cyprus company formation making Cyprus at a competitive advantage as the business hub of Europe.
Higher taxes eat into the company’s profits and it has always been good business sense to look for an investment opportunity where taxes are not oppressive. The matter of tax reduction becomes more interesting when international trading companies are concerned. One of the best jurisdictions is Cyprus with the investment benefits and tax rates for long term viability for business companies. The corporate tax rate of Cyprus at 10% is the lowest in the European jurisdiction making it the ideal environment for the Cyprus company formation. Because of its tax advantages Cyprus is recognized as the best investor friendly tax system in the whole of the European Union.
Cyprus is the ideal place to operate the international trading company from in order to take advantage of the low tax rates. When the economic crisis swept through Europe, many investors feared that Cyprus will modify the tax rates and reduce the investment benefits provided for foreign investors but, all the concerns were wrong since Cyprus has maintained its competitive advantage by continuing on being the offshore tax haven. With the tax advantages, it has become an obvious incentive for the Cyprus company formation.
Another incentive is the corporate structuring that is very beneficial for trading companies to save on the substantial amount of taxes. Cyprus offers your business the advantage of the strategic proximity to other industrial and trade hubs in the European continent including the favorable tax treaties that have been signed with other countries.