The Government is committed to making available the following grants to the taxpayers in the form of cash payments:

• grant of CYP 1,000 per annum for every child attending university abroad.
• grant of CYP 200 per annum for a blind person.
• grant of CYP 40 per annum for each child of a family with four or more children.

    Treatment of Dividends  

   Local companies must withhold tax at twenty per cent on dividends paid out of profits. The individual recipient shareholder has the following options for each tax year:

• The withholding tax on the dividends to be the final tax and the dividends not to be included in the tax return.
• To treat the withholding tax as a tax credit and to include the dividends in the tax return . If the withholding tax is greater than the final tax payable, the difference is refundable.

   When the dividends arise from profits which have been taxed with the minimum rate of ten per cent, there is an additional withholding tax of 16.67 %. The additional withholding tax is not credited to the taxpayer, nor does the taxpayer have the options stated above. Dividends paid out from such profits are always included in the individual’s tax return.

    Withholding tax on dividends paid by a local company to a foreign company is fully refundable.

    Offshore companies’ dividends are paid without any withholding tax in all cases.

    A Cyprus shipping company which owns ships under the Cyprus flag and operate in international waters pays no tax on its profits or dividends. Also, there is no tax on the salaries of officers and crew of such ships.Offshore ship management and crew management companies are liable to tax at the rate of 10 per cent, like any other offshore company.

   Capital Gains Tax

   Residents of Cyprus are liable to capital gains tax on their world-wide disposals of immovable property. Offshore companies, branches and expatriates are exempt, except for assets situated in Cyprus.

    Tax rare is twenty per cent on gains from the disposal of immovable property or shares in a company which owns immovable property.

   In determining the capital gain, the market value as on 1 January 1980 or the cost of acquisition if later, plus an indexation allowance is deducted from the sale proceeds. Expenses incurred wholly and exclusively to generate the gain and not deducted under income tax law are also deducted from the sale proceeds.

   Life-time gains arising on disposal of immovable property by individuals are exempt as follows:

• Disposal of private residence CYP 50,000
• Disposal of agricultural land   CYP 15,000
• Disposal of any property CYP 10,000

    Estate Duty

   Estate duty is imposed on property passing on death, as follows:

• Where the deceased was domiciled in Cyprus, on his property world-wide. Property in Cyprus acquired after 1 January 1976 with foreign currency by a deceased person who was at any time permanently resident abroad, is exempt.
• Where the deceased was not domiciled in Cyprus, only his property situated in Cyprus.

   Shares in shipping companies, offshore companies and bank deposits in Cyprus are exempt. Property includes the following :

• Movables and immovables of every kind.
• Gifts made by the deceased with reservation whenever made.
• Gifts made by the deceased within three years from the date of death.

    Determination of the value of the estate:

• Market value of the property at the date of death.
• For gifts, market value is the lower of :

              - market value at the date of transfer, or
              - market value at the date of death.

   Deductions

    Formation fees and expenses for Ready made – shelf companies, (Authorized Capital up to CYP 5,000): The following arrangements and expenses are included information costs:

• Application to the Registrar of Companies for the acceptance of the company’s name.
• Drafting and preparation of the Memorandum and Articles of Association of the Company.
• Attending the District Court of Nicosia for the relevant affidavit and the Registrar of Companies for filing all necessary documentation for the registration of the company.
• Registration of the Company with the Registrar of Companies and obtaining the relevant Certificates of Incorporation, Directors, Secretary, Registered Office and a true certified copy of the Memorandum and Articles of Association in Greek.
• Application to the Central Bank and obtaining the necessary permit relating to the registration of the offshore company in the name of the alien so as to consider it non-resident.

   Preparation of:

              a. Memorandum and Articles of Association in Greek.
              b. Memorandum and Articles of Association in English.
              c. Certificate of Incorporation.
              d. Certificate of Directors and Shareholders.
              e. Certificate of Registered Office.

• One bound set of all company documents made apostille.

    Total Fees                                                                                                      USD (upon request)

  The following expenses are charged separately:

        1.  Lawyers and Auditors fees are on an hourly basis.

        2.  Fees for approval by the Registrar of Companies for each
             additional name requested.                                                        MAX USD .....

        3.   For each additional documents which requires to be made apostille.
                                                                                                                   MAX USD .....

       4.  One bound set of all company documents made apostille and translation in Russia               made by our company. (Translation by P.I.O.or Russian Embassy USD $ 60,00  per               page).                                                                                                          USD .....

    Yearly Management Costs

• Registered Office with facilities and management services to be provided   Collection and transmission of mail, bank statements, facsimiless received and other Company documents to country of residence – P.O. Box, telephone, address and fax facilities – submission of Annual Return of the Company to the Registrar of Companies – Legal advice on regular legal matters of the company is provided from our lawyer associates.
• Bank facilities and operations – following instructions concerning any bank transactions, opening of letters of Credit – transferring of money –meetings with Bankers

  Incoming facsimiles                                                                               NO FIXED COSTS

   Telephone calls abroad are charged (depending upon the zone)
  per minute, at approximately                                                                                   USD .....

  Auditors and Lawyers fees are on an hourly basis.

  Annual Fixed Costs

  Services as:

• Nominee Director/Nominee Shareholder.
• Secretary (including submission of annual return to the Registrar of Companies) Registered Office without any facilities or management services to be provided.
                                                                                                                         USD (upon request)         

   Note: Any out of pocket expense incurred after the registration of the company (i.e. DHL, faxes, telephones etc.) will be charged additionally. Please note that V.A.T. is not included in any of the prices listed in Appendix II.

To Whom It May Concern

  (Name of Bank)
  Signature, Seal.

Telephone Numbers

Passport/Identity Card Number __________________________________________