Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations.
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.
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 probably constitutes Cyprus’ most compelling advantage, complemented by a broad range of high-quality professional services.
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.
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 and trading gains on the disposal of shares, bonds and other titles are exempt from tax.
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.
Efstathiou Court, Office 201, 3035 Limassol, Cyprus
Phone: +357 25057217