Since the mid 1970s, Cyprus has been established as an international business centre. Today, a large number of multinational and other companies have established offices, or use Cyprus as a base for conducting business with Europe, the Middle East and Africa.
In the meantime, the Cyprus shipping industry has grown immensely, resulting to many ship management companies, other interrelated services companies and many of the largest international shipping companies to establish a strong presence on the island.

As an international business centre, Cyprus has the following advantages to offer:

Non-tax incentives

• Strategic location at the crossroads of three continents: Europe, Asia and Africa
• Member of the EU and the Eurozone
• Advanced professional, legal, accounting and banking services
• Favourable legal system based on English Law
• No exchange control restrictions
• Simple and quick company formation procedures
• Convenient air transportation connections anywhere in the world
• Excellent telecommunication facilities connecting Cyprus with the rest of the world
• High standard of living
• Pleasant working and living environment with the lowest crime rate in Europe
• Highly skilled labour force

Tax-related incentives

• Low taxation
• Extensive double tax treaties network
• Exemption from tax in most cases on dividend income
• Exemption from tax on profit from the disposal of securities
• Exemption from withholding tax on dividends and interest paid to non-residents of Cyprus
• Exemption from withholding tax on royalties arising from sources outside Cyprus
• No time restriction on carrying forward of tax losses
  Profits earned from a permanent establishment abroad are fully exempt from corporation tax, under certain conditions
  
  Interest income earned from trading activities, including interest which is closely related with trading activities, is subject to low income tax
• Group relief provisions for companies based in Cyprus
• Reorganisations, mergers, acquisitions and amalgamations of companies have no tax implications
• Capital gains are not subject to tax except on sale of immovable property situated in Cyprus