Cyprus is an EU member state which is increasingly becoming a jurisdiction of choice for the structuring of corporate finance and acquisitions.

This is the case for a number of reasons:

• it features one of the most attractive transactional tax regimes in the EU
• there is no taxation on the acquisition or disposal of shares and no withholding tax on dividends
• its common law system affords certainty and clarity in acquisitions and corporate finance
• the Cypriot corporate law framework is modelled after English company law
• Cyprus features versatile financing legal tools, such as redeemable preference shares
• investors can benefit from tailored rights through classes of shares as well as private shareholders agreements to regulate their affairs
• it affords an intragroup financing framework which is fully aligned with the OECD’s BEPS
• it is a member of the Eurozone and has the euro as its currency
• it adheres to the highest anti-money laundering standards and features on the white list of the OECD
• it features one of the largest networks of double tax treaties, including the UK, the US, the UAE, India and China
• its tax system is fully aligned with EU State aid rules and no tax rulings have been challenged by the European Commission
• reorganisations, such as mergers, demergers, exchanges of shares and transfers of assets can be effected in a tax-neutral manner.

AMC Insight

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