Worldway Comprehensive Report: According to a report by the Cyprus Mail on July 2, the President of Cyprus recently announced tax reduction measures aimed at boosting the economy and attracting investment. With the rapid growth of wealth among Chinese citizens, reasonable tax avoidance has become the primary concern for the vast majority of the wealthy. As a world-class tax haven, further tax cuts in Cyprus will attract more Chinese individuals to immigrate and invest.
【Cyprus Taxation】
These tax reduction measures mainly include: tax exemptions for new investment capital; increasing and extending investment allowances for equipment and factory buildings until the end of 2016; introducing a "non-domiciled resident" status, which provides exemption from the Special Defence Contribution tax on the condition of voluntary tax payment; continuing to provide tax incentives for individuals working in Cyprus who have obtained residency status; halving property transfer fees; exempting capital gains tax on property purchases until the end of 2016; and consolidating local and central government real estate taxes, with a consolidated levy of 0.1% based on the 2013 valuation of the property. The President of Cyprus stated that these reforms will make the tax system more attractive and transparent, reducing the burden on taxpayers.
Cyprus is an island nation located at the intersection of Europe and Asia, in the eastern part of the Mediterranean Sea. It occupies an important strategic position at the crossroads of Asia, Africa, and Europe, and is also part of the European Union system. Multinational corporations can leverage their Cyprus residency status to enjoy the country's excellent preferential tax policies.
With the lowest tax rates in Europe, a corporate income tax of only 12.5%, and 0% inheritance tax, it is a tax haven. Cyprus has currently signed double taxation avoidance treaties with 50 countries and regions (including China). It offers a superior tax system: a 12.5% corporate income tax rate, which is the lowest in the EU; no withholding tax on dividends and interest paid to non-Cyprus tax residents; dividend income is exempt from tax in most cases; profits earned by overseas permanent establishments are tax-exempt; income from the sale of stocks, bonds, or other securities is exempt from tax; and there is no capital gains tax on the sale of overseas real estate.
In summary, Cyprus is an ideal destination for your investments in Europe or investments outside of Europe, and it is also an excellent choice for your international tax planning.
Worldway immigration experts state that investing and immigrating to Cyprus not only has a low threshold for immigration applications and offers the flexibility for investors to "immigrate without relocating," but also provides great convenience for children's education, allows access to high EU welfare benefits, and offers a convenient path for overseas listing for high-net-worth individuals' business development. Therefore, Cyprus has become a tax haven favored by the global wealthy. For details on Cyprus investment immigration, please call 400-138-2929.
