Cyprus Trading Company
One of the main advantages of registering a trading company in Cyprus is the favorable tax rate of 12,50 % on the net corporate profits.
As shown below, in international triangular trading, the Cyprus company can be used as an intermediary between the selling and the receiving of goods company in order to purchase and resell goods, utilizing thus the favorable tax system of 12,50 % on the annual profits and reducing the overall tax burden of the transaction.
Furthermore to the above, Cyprus has a variety of double tax treaties with EU and third countries that enable Cyprus companies to take advantage of the low 12,50% corporation tax.
As from the 1st of May 2004, Cyprus is a full member of the European Union, so a Cyprus trading company that is registered to VAT in Cyprus may sell and receive goods to/from other member states at zero VAT rate.