Cross-border acquisitions and corporate finance through Cyprus

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.

 


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