Why Cyprus Is A Tax Incentive Country

Cyprus is a tax incentive country and not a tax haven, i.e. a country with an acceptable level of taxation rather than no taxation at all. The amendment of the Cyprus tax law in 1977 introduced a favourable rate of tax for foreign companies registered in Cyprus. We have named these companies "offshore" simply to indicate that they carry on their business outside Cyprus. To complete the definition of an offshore company, we must say that these entities must be owned by non - Cypriots.

A number of favourable factors make Cyprus attractive to foreign businessmen and investors. These may be summarised as follows:

GEOGRAPHICAL POSITION

Cyprus is situated at the meeting point of the continents of Europe, Asia and Africa. The proximity of this location to the Middle East has led a large number of foreign companies operating in the area to set up a base on the island for their activities outside Cyprus. At the same time it has a very good climate and a convenient time zone in