Cyprus finance companies are favoured due to the low tax rate of 10% imposed on interest income when it is accrued as a result of the ordinary activities of the company
No withholding taxes on interest payments from the Cyprus finance company to non residents of Cyprus
There is no withholding tax on interest received:
From an EU location by means of application of the interest and royalty directive
From Russia or the Ukraine by means of the double tax treaties with Cyprus
