Cyprus: A dynamic business and investment centre INTAX FORUM

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3 Cyprus: A dynamic business and investment centre INTAX FORUM Kiev, 29 th May 2017

4 Cyprus Investment Promotion Agency

5 Cyprus: an international business hub A destination of choice for doing business A reputable international "centre of excellence" Opportunities in a wide range of economic sectors

6 Cyprus: Competitive advantages High quality of life Geostrategic location EU and Eurozone member Advanced infrastructure Robust legal & regulatory framework Highly skilled human talent Attractive tax regime

7 Legal system Fully transparent Based on UK Common Law Principles Harmonized with international standards Application of EU directives

8 Corporate tax benefits EU & OECD Compliant / Access to EU directives Corporate tax rate at 12,5% Dividend participation exemption No tax on profits from disposal of securities No withholding taxes No taxation of capital gains under conditions Notional Interest Deduction (NID) on investment in Cypriot companies No Controlled Foreign Company (CFC) rules Attractive IP Regime

9 Employee tax benefits Income more than 100K/year Exemption from personal income tax of 50% for new residents of Cyprus commencing employment as from 1 January 2012 Applies for the first 10 years of employment in Cyprus Income less than 100K/year Exemption from personal income tax of 20%, up to a maximum of per annum, for a person who was not resident of Cyprus before commencing employment Applies for the first 10 years of employment in Cyprus

10 Investor tax benefits Exempt passive income for non-domiciled individuals Non-domiciled individuals who are tax residents of Cyprus are not subject to defence tax on the following types of passive income earned from sources both within Cyprus or abroad, irrespective of whether it is remitted to Cyprus or not: Dividends Interest Rent

11 Human talent Highest tertiary education % in EU (CY 53% - EU 38%) International business experience Specialised service offering Highly qualified professionals 120+ accounting firms 160+ law firms Multilingual workforce

12 Key economic sectors Tourism & Hospitality Shipping Real Estate Professional Services Investment Funds Energy Start-Ups & Innovation

13 Tourism o Record tourists arrivals in 2016 (3.2 m) o 2014 to 2016 increased by 31% o o Renowned tourism destination Resilience and growth create numerous investment opportunities

14 Hospitality and Tourism - Large-scale projects Marinas Hotels Leisure & Theme Parks Luxury Resorts Golf Courses Integrated Casino Resort

15 Incentives for investments in real estate 0% Transfer fees for purchase of new properties Reduced to 5% VAT for purchase of residential property 20% of rental income is tax deductible 0% inheritance tax 0% Property Tax

16 New Citizenship Scheme PLAN A: acquisition in a single residential property of at least 2 m PLAN B: investment in a mixture of residential/commercial properties OR in Cypriot companies OR in Cypriot Funds of at least 2 m AND acquisition of a residence of at least 0.5 m

17 Shipping & Maritime Cluster EU approved tonnage tax regime with benefits for: o ship-owning o ship-management o crew management Largest Ship Management Centre in EU & 2nd largest globally 3rd largest merchant fleet in EU & 10th largest fleet worldwide Advanced maritime infrastructure & 2 multipurpose deep-sea ports Cyprus Flag: 1,022+ vessels with 21 million gross tonnage 150+ ship owning & ship management companies in Cyprus

18 Investment funds Cost-efficient and simple to set-up and run Robust & business friendly regulatory framework Supervised by a competent & accessible regulatory authority Most income of a Cyprus tax resident Fund is tax free No restrictions by the Regulator on type of investments Reduced reporting requirements

19 Start-Ups and Innovation Incentives Income tax relief of up to 50% of taxable income for natural persons investing in qualifying Start-ups Upper limit of deduction 150,000/year Right to claim the tax relief within a 5-year time period Start-up visa for qualifying applicants

20 Oil & gas Intensive Inter-Government momentum promoting regional strategy Significant interest from Oil & Gas majors during 3rd Licensing Round for offshore exploration Bidders: Exxon Mobil, Eni, Total, Cairo Energy, Statoil, Qatar Petroleum, Delek/Avner

21 Thank you George Campanellas Board Member