In total there are 250.000 Holding company registered in Cyprus, with over 3.000 of them have a Swedish connection.
Business owners from particular countries, Norway, Germany, Britain and Russia have drawn attention to the tax benefits, despite the fact that Russia, for example, the comparatively favorable corporate taxes.
What, then, is behind this success?
Succinctly summarized as follows, Income Tax A progressive income tax applied between 0 - to 30 percent, with 19.500 Euro per year means 0 percent in taxes and 36.301 Euro and above is taxed at a maximum of 30 percent
Social contributions The employee pays social security contributions of 6.3 percent of their income up to a ceiling on incomes of up to 46 032 EUR, ie a maximum of a cost of 2.900 Euro per year.
Exempt from tax is - Lump sum at retirement, death, injury.
- A person who has not previously been employed in Cyprus receives in addition to the above, a deduction of 20 percent maximum of 8 543 per year during the first 3 years.
- Compensation paid service from outside Cyprus for more than 90 days a tax year if the employer is not resident in Cyprus.
Cyprus has double tax treaties with most countries, and applies a variety of deduction rules, for example, given the right to deduct contributions to the unions. Inheritance tax and wealth tax does not apply to Cyprus.
In addition to favorable tax conditions as are offered high quality of life. Cyprus has once again received the award "Europe's cleanest bathing waters 2009" and combined with 340 sunny days per year so it cannot be appealed on the climate. On the eastern side of Cyprus, you can actually swim and ski on the same day.
Cecilia Helland