Cyprus Ideal Tax System

Tax system and incentives make Cyprus an ideal place for investment. Under the tax reform companies are taxed at the rate of 12.5% on their total income provided that their management and control is exercised in Cyprus.
The tax rate of 12.5% and the number of tax treaties with the majority of European and other countries that exist for the avoidance of double taxation make Cyprus the country with the lowest tax burden on the affairs of the company in the European Union.

By applying international planning techniques, this tax can be minimized or even eliminated.

• No withholding tax on dividend, interest and royalty (when the right/asset is used outside of Cyprus) payments made to non-Cyprus resident recipients.
   
• Dividend income from abroad to Cyprus is wholly exempt from tax under certain relaxed conditions.
   
• New tax legislation adopts appropriate European Union directive, which enables reorganizations, mergers, acquisitions and amalgamations of companies without tax implications.
   
• Profit from the sale of securities is exempt from tax.
   
• Profits from permanent establishment abroad are exempt from corporation tax provided certain relaxed conditions are met.
   
• Tax losses can be carried forward for a period of five years.
   
• There is group relief for the utilization of tax losses.
   
• Tax credit for foreign tax paid.
   
• Interest income is wholly exempt from corporate income tax.
   
• Dividend income is wholly exempt from corporate income tax.
  
   

Please do not hesitate to contact us for professional advice regarding the full tax implications of the transactions of your company.