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You are here: Home arrow News arrow Establishing your portfolio investment company in Cyprus
Establishing your portfolio investment company in Cyprus
With its accession to the European Union, Cyprus became an attractive low-tax jurisdiction for international corporate tax planning and, the amendments made to its tax laws earlier in November 2009, have enhanced further its position as an attractive jurisdiction for the establishment of portfolio investment companies.
With its accession to the European Union, Cyprus became an attractive low-tax jurisdiction for international corporate tax planning and, the amendments made to its tax laws earlier in November 2009, have enhanced further its position as an attractive jurisdiction for the establishment of portfolio investment companies.
 
Previously, Cyprus was attractive for establishing such companies due to the absence of capital gains tax derived from non-resident investments although a 15% tax was still levied on dividends received from portfolio investments.
 
Under the new rules, most of these dividends may be now tax exempt since it has become easier for portfolio investors to benefit from the exemption. This, together with the lack of capital gains tax increased the attractiveness of Cyprus as a tax efficient jurisdiction for the setting up of portfolio investment companies.
 
Existing portfolio investment companies established outside Cyprus may still benefit from the Cypriot tax regime by re-domiciling to Cyprus. The companies continue to exist by undergoing a smooth conversion process without the need to liquidate or sell a current portfolio whilst benefiting from the new tax regime in Cyprus.
 
For more information, please contact Mr Costas Afxentiou, CEO and Head of Corporate Administration and Business Compliance Services.