The Republic of Cyprus is rightfully considered one of the most comfortable countries in doing business for foreigners due to the relatively stable tax environment, high information security, excellent infrastructure, the well-developed banking system and loyalty from the authorities. Simple and transparent procedure for opening a company and state policy aimed at supporting entrepreneurship contributes to the constant development of the island. The economy of Northern Cyprus is currently actively growing, the tourist inflow is increasing annually, the real estate market and the education sector are expanding. In 2009, Cyprus was officially included in the whitelist of countries by the Organization for Economic Co-operation and Development (OECD).
Besides, Cyprus is very attractive for holding companies having the right to engage in any legal activity. Holdings are exempt from taxes on royalties, interest, profits from the sale of securities. Also, the profits of all overseas branches/subsidiaries are taxed at a zero rate. At the same time, income from real estate is exempt from income tax and capital gains tax. Companies registered in Cyprus can be used to acquire real estate or other assets outside the island, as income from the sale of such assets is exempt from taxation in Cyprus.