The accession of Cyprus in the EU has enhanced the already significant influence the country has as an International Financial Centre (IFC). Cyprus is a well respected and reputable IFC and it is not identified with tax havens, with countries engaged in harmful tax practices and with non-cooperative countries in the fight against money laundering.

Cyprus has always been an ideal location for holding companies. Cyprus is most commonly used as an intermediate holding company location in the following circumstances:

The attractive tax system of Cyprus, together with its EU accession has helped Cyprus establish itself as an ideal holding company location in the EU.

The main advantages of the Cyprus tax legislation are as follows:

• Cyprus’ current tax system is in full compliance with the EU and OECD.
• Taxable profits of all Cypriot companies are taxed at the rate of... 

Cyprus is situated in the northeastern basin of the Mediterranean Sea at the crossroads of Europe, Asia and Africa and it‘s the third largest island in the Mediterranean after Sicily and Sardinia.