Cyprus holds the key to giving your business the winning advantage.

10% corporation tax; one of the lowest rates in the EU
The best holding company jurisdiction; 1% holding in foreign company entitles Cyprus Holding Company to tax benefits
No inheritance tax
No tax on the sale of shares [...]

Tax residents of Cyprus are liable to pay the Special Contribution for Defence, non-tax residents are exempt. Foreign taxes paid can also be credited against the defence tax liability.

It is charged at the rates shown in the table below:

Profit from the sales of property in Cyprus is subject to Capital Gains Tax (CGT) at the rate of 20%.  CGT also applies to profits from the sale of shares in companies which own property in Cyprus, unless the company is listed on the stock exchange.
Exemptions: in the following examples CGT does not apply:
·         Transfer [...]

The rate of corporation tax is 10%.  Companies pay corporation tax. Sole traders and partnerships do not pay corporation tax.  All companies that are tax-resident in Cyprus are taxed on income whether it comes from Cyprus or anywhere else in the World.  Companies which are not tax-resident in Cyprus, but have a permanent establishment (office) [...]

Only businesses that are registered for VAT can charge VAT, when registered VAT is added on all taxable sales (output tax) supplied in Cyprus and to non-VAT registered parties within the EU.

VAT applied to sales invoices is referred to as “output tax”.
VAT applied to purchase [...]

From January 1st 2010 a series of changes to EU VAT law will be applied which will run through to 2015.  This first phase will especially affect business that trade internationally.  Businesses will need to be compliant with the new regulations in order to avoid potential penalties by 01/01/2010.
Key changes:

Place of supply of [...]

Self-employed persons and employed persons pay different rates of Social Insurance as outlined below:
Self-employed:
The Contributions for self employed people are calculated as 12.6% of a pre‑determined “notional” income which varies depending upon profession or business activity.  The lowest level of “notional income” is €229 (Farmers; and similar professions; refuse collectors; workers in quarries, marine workers [...]