A LITTLE BIT ABOUT US
Ioannou & Damianou Limited is an independent firm of Certified Public Accountants, Auditors and Business Advisors. The firm is registered with and regulated by the Institute of Certified Public Accountants of Cyprus (ICPAC). Its directors are members and fellow members of ACCA and ICAEW of the UK and ICPAC.
4 Georgios Seferis Street, Suite 4A
P.C. 1076 Nicosia
Tel.: +357 22 760 220
Fax: +357 22 75 95 95
© Ioannou & Damianou Limited 2017 All rights reserved.
Information on Cyprus
Over the years Cyprus has become a reputable European Onshore Jurisdiction where many groups have set up their headquarters or regional offices or set up companies as part of their international structures. Click below to find out some of the reasons why.
Cyprus has been a member of the European Union (EU) since 01 May 2004 and a member of the Eurozone since 01 January 2008. Cyprus companies can offer goods and provide services and can also invest in any EU country without restriction. The EU, with a population of more than 500 million people, comprises the world's third largest population after China and India.
Cyprus is a suitable location for EU companies wishing to invest out of the EU and non-EU companies wishing to invest in the EU.
Cyprus is located at the crossroads of Europe, Africa and Asia. It is ideal for the establishment of headquarters/regional offices of international businesses because of its strategic location in between three continents, its proximity to the important markets of Europe, the CIS countries, the markets of the Middle East, the Gulf countries and the emerging markets of Asia.
In addition, Cyprus's time zone of GMT+2 hours places it within +/- 2 hours of the working day of approximately 2 billion of the world's population.
Cyprus has a competitive, simple and transparent tax regime which is compliant with EU and OECD standards. Some of its main characteristics include:
Corporate tax rate of 12.5% on company profits; exemption from taxation of dividend income and profits from the sale of securities; no withholding tax on dividends, interest and royalties paid from Cyprus; 80% exemption of royalty income and gains from disposal of intellectual property; credit relief for foreign taxes; group loss relief; no capital gains tax except on real estate situated in Cyprus; no wealth. Additional tax benefits apply for non-Cypriot domiciled individuals residing in Cyprus.
Cyprus has Double Tax Treaties (DTTs) in place with more than 50 countries. The effect of this vast network of DTTs is that they either eliminate or substantially reduce withholding taxes on dividends, interest and royalties between countries.
It has to be noted that payments of dividends, interest and normally royalties from Cyprus are exempt from withholding taxes.
As far as dividends, interest and royalties received in Cyprus from abroad, these are collected, where applicable, under the provisions of the DTTs or the EU Parent Subsidiary Directive / EU Interest and Royalties Directive. Therefore, withholding tax is either lowered or eliminated in most cases.
As a former British colony, Cyprus's legal system is based on English Common Law. It is compliant with the EU (regulations and directives), as well as the Financial Action Task Force (FATF), the Organisation of Economic Co-operation and Development (OECD) and the Financial Stability Forum laws and regulations. Cyprus's legal system is widely recognised as a business-friendly and effective system ensuring reliability and transparency in business practices.
The Cyprus Companies Law (cap. 113) was based on the UK Companies Law (replica); however, since its adoption it has been, and still is, subject to amendments in an effort by the government to constantly modernise it ensuring that Cyprus remains a competitive International Business Centre.
The success of the service's sector in Cyprus, which makes up a significant part of the islands' economy, is due to a great extend to the high standard of services offered by its accounting/audit, legal and other professionals that have been offering services to local and international investors over the last few decades.
The implementation of a strong regulatory framework by the competent authorities, who are licensing and supervising professional individuals and firms, ensures strict adherence to the highest professional standards.
As a dynamic international business centre, Cyprus has an abundance of highly educated and multilingual human capital and one of the highest percentages of university graduates in the world. The majority of professionals in Cyprus study mostly in the UK, the US and Europe and many of them complement their studies with overseas working experience prior to returning and setting up in Cyprus. English is spoken in Cyprus more than in any other European country (except of course countries where the native language is English).
Despite the high standard of professional services offered in Cyprus, establishment, maintenance and operating costs in Cyprus are very competitive as compared to other Western European Countries. This does not apply only to professional services but to other areas as well such as acquiring or leasing of property (either office space or accommodation), utility services, skilled labour, etc.
The above make Cyprus a very attractive relocation option for both companies and individuals.
Cyprus has a modern road network, two new international airports with more airlines jetting in and with extensive multimillion investments in its port facilities is making a name as a key transport hub.
The promotion of a digital economy and the development of secure and efficient communication networks are high on the agenda in Cyprus. Cyprus's fully digital network with high-speed international connectivity plays a very important role in making Cyprus attractive to international companies and an increasing number of information and communication technology businesses are present on the island today.
Tens of thousands of foreign nationals live and work in Cyprus making it a very diverse and cosmopolitan place to live in. The standard of living is high and the crime rate is very low. Cyprus offers excellent healthcare services in both public hospitals as well as private clinics and hospitals.
Cyprus is the sunniest country in Europe where the sun shines throughout the year and in particular between April and September the daily average exceeds 11 hours. During winter, there is enough snow on the Troodos mountain range allowing the skiing pistes to open.
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