Government actively promotes the further development of the TRNC as an international financial and commercial centre. Government's declared intention is to interpret existing legislation liberally and to introduce legislation so that international businesses may operate efficiently within a favorable environment compatible with sound principles.

At the same time new measures are being adopted for the improvement of the infrastructure and the quality of services to international business entities.

There is practically no red tape. Residence and work permits for expatriate personnel are issued as a matter of course.

Confidentiality:

The anonymity of the beneficial owners of international business entities is assured though the use of nominees. Any information disclosed to the Ministry of Economy, including the names of beneficial owners and financial or other information about the Company and its owners, remains strictly confidential.

Exemption from exchange controls:

International Business entities and their expatriate personnel are exempted form exchange control restrictions in their dealings with non residents and are permitted to maintain freely transferable bank accounts in any currency in the TRNC and abroad.

Duty free goods:

International Business entities which have established an office in the TRNC and their expatriate personnel living in Cyprus may import or purchase locally office and household equipment and cars free from customs duties. Furniture is excluded from the concessions.

Geographical location:

The geographical location of the TRNC at the crossroads of Europe, Asia and Africa is an ideal location, not only for regional but also for international operations.

The position of the TRNC in the time zones permits the completion of business between the Far East, Europe and Africa on the same day.

Tax Incentives:

Corporation tax:

International Business Companies pay 2.5% Corporation Tax on their net profit. Offshore Banks pay %2 of their net profits as Corporation Tax.

Dividends:

Dividends paid by International Business Companies and offshore banks are not subject to withholding or other taxes. Dividends paid by local companies are subject to withholding taxes.

Interest:

There are no withholding or other taxes on interest paid by international business  companies and offshore bank and on interest earned on foreign funds deposited with a local bank.

Other taxes:

International Business entities and  offshore bank are exempted from:

- tax on capital gains arising on disposal of assets outside the TRNC.

Furthermore, shares held in an offshore company are exempt from estate duty.