The Republic of Cyprus is an established international financial and business center, being a member of the European Union and Eurozone is geographically situated at the Eastern end of the European Union. Cyprus offers itself as an ideal location for investing, setting up a holding company and generally serves as a gateway for routing investments anywhere in the world. The Republic of Cyprus has created a very attractive environment for Foreign Direct Investments (FDI) through its European Union harmonized legislation, favourable tax regime as well as its excellent organization facilities and services. On the taxation side, the Republic of Cyprus offers a combination of low corporate tax along with an extensive network of double tax treaties. This helps to facilitate tax optimization and maximize after tax returns to investors.

Due to its favourable tax regime, compliance with European Union regulations and strict anti-money laundering regulations, Cyprus is considered as a very attractive holding company jurisdiction. Cyprus is justifiably regarded as a tax advantageous holding jurisdiction and this is why it’s so popular amongst foreign investors and entrepreneurs. As a result to its European Union accession Cyprus reformed its tax system to bring it in line with European Union requirements and also within the Organisation for Economic Co-operation and Development (OECD) requirements against harmful tax practices. Thus the reformed tax system is in full compliance with European Union and Organisation for Economic Co-operation and Development (OECD). Broadly speaking due to the advantageous prevailing conditions and circumstances Cyprus has rightfully been established as a reputable business/investment center where foreign investors have the opportunity of investing and establishing a business on equal terms with local Investors.