Cyprus
Cyprus is the third largest island in the Mediterranean Sea after Sicily and Sardinia.
Its population is now approximately 780.000 people of which approximately 77% are Greek Cypriots and the official languages are Greek and Turkish. However English is almost universally used as a second language and is also widely used in business.
Cyprus is an independent and sovereign republic with a presidential system of government. The president serves a five year term and is both the Chief of State and Head of government. The legislative power lies with the House of Representatives. Its members also serve five year terms. Its legal system is based on common law, with civil law modifications. The most principles are the same which are applicable in the United Kingdom. Cyprus economy demonstrates low unemployment and inflation rates, a very strong currency, and relatively a low fiscal deficit. Cost of living and quality of life compares favorably with other European Countries. Cyprus is one of the 10 countries that became full members of the EU on the 1st May 2004
Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005 and adopted the Euro on 1st January 2008 which is now the official currency of the country. The Cyprus workforce is around 370.000 people and the level of unemployment is kept low at 3.5%. The inflation rate on consumer prices is approximately 2.3%.
The Cyprus taxation system went through a reform to conform with EU entry regulations but remained favorable for international investors offering benefits such as:<br>
- Low corporation tax rates (10% on taxable profits)
- No tax on the sale of investments
- No time limitation on utilization of tax losses and group relief provisions
- No tax on investment income from dividends
Cyprus also has signed numerous double tax treaties with all major countries.