Cyprus is a reputable international financial centre, owing to its:
favourable tax regime, the most favourable in the European Union (EU), with a wide network of double tax treaties;
excellent financial and legal infrastructure, including a highly developed banking network and professional services sector (accounting, legal, etc);
abundant supply of multilingual human capital;
excellent telecommunications network;
strategic location, situated in the Eastern Mediterranean, where Europe, Asia and Africa meet;
alignment with EU economic policy through implementation of EU directives, since it is a member of the EU.
A reputable international financial centre like Cyprus is preferred to a jurisdiction that is a tax haven with zero tax because transactions made by companies registered in such jurisdictions will be treated with suspicion by the native country’s tax authorities and will be ignored for income/ corporate tax purposes. Furthermore, tax havens carry with them the suspicion of money laundering.
Doing business in and through Cyprus is also a lot of fun, when combined with pleasure, as most days of the year on the island are warm and sunny and Cyprus has the best and cleanest beaches in Europe for swimming.
