As of 2003 Cyprus has undergone major reforms mainly due to its accession process to the EU and also in order to comply with the OECD requirements against harmful tax practices. These reforms together with the extended and comprehensive double taxation treaties with over 30 other countries greatly enhance Cyprus’ competitiveness and make it an even more attractive jurisdiction through which to conduct international business. The main provisions of the favorable tax regime are as follows:

• The lowest corporate tax rate in Europe 10%.
• Repatriation of profits from Cyprus Companies to Non-Residents (Physical or legal) is free from any withholding tax, subject to certain provision.
• No time restriction on carrying forward tax losses.
• Group Relief Provisions.
• Profit from disposal of securities is exempt from tax.
• Profits from permanent establishments maintained abroad are exempt from tax.
• Non-Resident Companies are only taxable on their Cyprus source income.