Corporate Structuring

Achieve tax efficiencies via Cyprus

Why Cyprus?

Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations.

Non-Tax Reasons

  • Member State of the EU & Monetary Union:

    EU membership ensures safety and stability for investors, quality, efficiency, and transparency in transactions and market access to more than 500 million EU citizens.

  • Strategic Location:

    Ideal geographical position at the crossroads of three continents – Europe, Africa, and Asia

  • Legal and Regulatory Framework:

    A robust legal and regulatory framework based on English Common Law principles, widely recognized as business-friendly and fully compliant with the EU, FATF, OECD directives and guidelines.

  • Human Talent & Level of Services

    Human talent probably constitutes Cyprus’ most compelling advantage, complemented by a broad range of high-quality professional services.

Tax Reasons

  • Corporate Tax Rate:

    12,5% on profits, one of the lowest in the EU.

  • Dividend Participation Exemption:

    In the majority of the cases, dividend income earned by a Cyprus company is exempt from tax.

  • Finance Income:

    Taxed as trading income and through proper planning, the resuting tax can be reduced to as low as 2,5% on net interest income.

  • Capital Gains Exemption:

    Capital gains and trading gains on the disposal of shares, bonds and other titles are exempt from tax.

  • IP Regime:

    Income from qualifying intangibles can be taxed as low as 2,5%.

  • Notional Interest Deduction (NID):

    A favourable NID regime which can reduce taxable profits significantly, resulting in a low effective tax as low as 2,5%.

  • No Withholding Taxes:

    Cyprus does not apply any withholding taxes on outbound payments of dividends, interest and royalties (not used in Cyprus) to non-residents.

  • Double Tax Treaties / EU Directives:

    A wide network of Double Tax Treaties and application of the EU Directives (Parent-Subsidiary, Interest and Royalties) for the avoidance or reduction of foreign withholding taxes.

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