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In association with
Cyprus historically established itself as a popular tax haven with an exceptionally low flat rate of corporation tax and strict privacy laws for businesses and individuals.
By Alex Fielding, tax adviser at Cassons.Today, Cyprus remains an attractive place to set up a company with one of the lowest corporation tax rates in the European Union of 12.5 per cent.
With Cyprus being signatory to several worldwide Intellectual Property (IP) protection treaties it offers an ideal location for IP management and utilisation.
This can result in an effective rate of corporation tax as low as 2.5 per cent on qualifying IP rights, such as copyrights and patents.
Any staff seconded to Cyprus will be taxed on employment income there, so it is important to understand the income tax rules and rates.
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