European Member State
Cyprus has been introduced as a member of the European Union on 1 May 2004. As such, the economic conditions in Cyprus were relaxed, as the free trade and the removal of tariff barriers helped to reduce costs and prices for retail sellers and consumers alike. Furthermore the free movement of foreign professionals coming from abroad, helped with the development of a highly professional workforce that can sustain any international business operating in Cyprus and abroad (through a Cyprus permanent establishment operating overseas).

Tax Benefits
Profits from a permanent establishment abroad are exempt in Cyprus. Nevertheless, losses incurred from a business abroad, including losses of a foreign permanent establishment are deductible if chosen to, however future profits (up to the amount of the losses deducted) from a permanent establishment abroad will be taxable in that case.
Any dividends received, including foreign dividends, are exempt from taxation (provided certain criteria are met). Gains on immovable property located abroad are not subject to capital gains tax in Cyprus.

Infrastructure Benefits
The local infrastructure is ideally suited for companies operating in Cyprus. Thanks to an extensive telecommunications network, extensive port facilities and a modern road network, travelling in and out of Cyprus is fast, efficient and economical. Furthermore, recent developments have relaxed the criteria for obtaining a permanent residency permit, making it now easier than ever to live and work in Cyprus.