Any profits from the disposal of securities, irrespective of whether the profits arise
from the company’s trading activities or are of a capital nature, are exempt from
tax in Cyprus. Hence, security trading companies can structure their operations via Cyprus and achieve nil taxation and at the same time enjoy EU identity and regulations.

In accordance with the tax legislation “Securities’ are defined as shares, debentures, Government Bonds, founder’s shares or other shares of companies or other legal entities which have been incorporated in Cyprus or abroad and any kind of options thereon.