This specific area of law has seen a lot of development over the last 2 decades. Since the accession of Cyprus to the European Union and the abolition of the offshore company status, new incentives have been introduced in order to maintain the beneficial double tax treaties network that the Cyprus International Business Companies enjoy with 62 countries. In addition, and subsequent to the Cadbury Schweppes ruling of the ECJ, a number of third countries are redrafting their tax legislation to achieve conformity with its provisions.
Cyprus is the ideal jurisdiction to register and maintain a holding company to receive the beneficial tax rate of 12.5% over net income. Recently legislation has been passed to enable the registration of the Cyprus Societe Europeas (SE).