Korellis Iosif Ltd is a professional services firm in Cyprus, specializing in the areas of audit, accounting, tax, and financial advisory. Our company is composed of high caliber individuals, who work together as a team and are committed in delivering quality and value.

The firm prides itself on paying close attention to the individual needs of its clients and showing interest and devotion in their development. The firm undoubtedly can provide useful advice to help its clients to meet their targets and develop a relationship that will be both independent and objective.

Since the beginning, the firm was involved in providing audit and management consulting services as well as handling international tax matters. The firm also provides specialized services such as corporate recovery and insolvency. Clients can be assured that we participate on a daily basis in serving their individual and corporate needs with professionalism and confidentiality.

We have also access to a wide professional network by maintaining strong relationships with bankers, lawyers, and government authorities. Our portfolio consists of local and international businesses seeking to establish a credible presence in Cyprus.

General business reasons

Cyprus is a small country located in the junction of three continents: Europe-Asia-Africa. Despite its size, Cyprus is and has traditionally been an important business centre.

The availability of highly qualified, trained professionals and service advisors coupled with the fact that Cyprus has been in the EU since May 2004 and the Eurozone since January 2008, make Cyprus an attractive business and financial destination.

The extensive DTT network (currently over 50 countries), the favourable legal and tax environment, the well-developed service infrastructure (telecommunications, energy, transport), lower set-up and operational costs (compared to most EU jurisdictions) give Cyprus the extra notch necessary for international businesses to effect their inbound and/or outbound holding and/or financing structures using Cyprus. Furthermore, this favourable business environment has led multinational companies to re-domicile their headquarters from their home country to Cyprus.

Last but not least, the fact that Cyprus has been placed on the oil and gas energy map during the past few years, with multinational companies already in the process of drilling, gives an extra reason for international businesses to either structure through or even operate in Cyprus.

Cyprus tax system

Cyprus’ tax system can be summarised as follows:

• Low corporate tax rate of 12,5% - Nonetheless, effective tax rate could be much lower due to:

• No tax on disposal of securities (titles) – unconditional
• Exemption system on foreign dividend income/profits with easily met conditions
• No thin capitalisation rules
• No Controlled Foreign Company (CFC) rules, thus exempting foreign income received
• Expenses deductibility
• Low income spreads/margins possible
• Extensive treaty network
• No withholding tax on outward payments of dividends, interest and on all but Cyprus sourced royalties
• Profits from qualifying foreign permanent establishment are tax exempt
• Flexible reorganisation rules and group relief provisions
• No restriction on foreign ownership
• No exit costs

• Applicability of EU tax Directives: Reorganisations, Parent/Subsidiary, Interest/Royalties
• No stamp duty on contracts relating to matters outside Cyprus
• Most international transactions are free of Cyprus VAT
• Favourable merchant shipping law
• Favourable intellectual property law
• Tax free trust structures
• OECD approved / EU compliant system
• Tax incentives offered to executives of multinational companies working in Cyprus