KEY TAX FEATURES

In a globalized economy where business corporations are pressed to cut costs while increasing quality, Cyprus is the solution. The combination of tax beneficial provisions coupled with the relatively lower costs of high-level professional services that can be offered; render Cyprus as an attractive investment destination for investors originating from around the world.

• 12.5% flat corporate tax rate.
• Foreign sourced dividends are exempt from tax under easily met conditions.
• Disposals of shares and other qualifying titles are generally exempt from tax.
• Generally no withholding taxes on payments from Cyprus.
• Profits of foreign permanent establishments (PE) are exempt from taxation in Cyprus under easily met conditions.
• IP tax regime with an effective tax rate of 2.5%.
• Unilateral credit relief for foreign taxes.
• No CFC legislation.
• No thin capitalisation rules.
• No detailed transfer pricing rules (arm’s length principle only).
• No capital gains tax (except on real estate situated in Cyprus).
• No taxes on entry, reorganisations and exits.
• Low personal tax regime with 35% top rate.
• Generous tax deductibility rules that reduce the effective tax rates.
• Stable and straight forward tax legislation.