- * One of the lowest corporate tax rates in the EU at 12.5%
- * An attractive Double Tax Treaty network covering more than 60 countries Access to all EU Tax Directives
- * Dividend income exemption based on relaxed conditions
- * Capital gains tax exemption-No withholding tax on outgoing dividend, interest or royalty payments
- * Gains from trading in securities are tax exempt
- * Notional interest deduction available for equity investment into Cypriot companies
- * Foreign Exchange gains or losses are tax neutral
- * An attractive personal tax regime for international professionals and non-domiciled individuals
- * No succession or inheritance taxes
- * No immovable property taxes
- * A competitive Intellectual Property regime
- * Tailor-made provisions for the investment funds industry
- * Competitive Tonnage Tax for Shipping companies and an approved EU open registry
- * Tax deductions for investment into start-ups
- * The legal system is closely aligned to the English common law legal system
- * Frequently updated to meet investors’ changing needs
- * Strong protection for investment & intellectual property (IP)
- * Establishing a business is simple and fast
* Corporate tax rate *
Cyprus has corporate income tax rate of 0%-12,5%. This is the lowest corporate tax rate in the European Union. Exemption from tax on dividend income Dividend income is exempt from tax irrespective if its source provided that a minimum 1% holding in the company paying the dividend is maintained and either the paying company engages directly or indirectly in more than 50% of activities that give rise to non-investment income or the non-Cypriot tax burden on the dividend paying company’s income is not lower than 5%. Dividends are not considered to be sourced from investment income if they are derived directly or indirectly from trading subsidiaries.
No withholding taxes Dividends paid to non-resident shareholders are exempt from withholding tax in Cyprus. Also, no withholding tax is imposed on interest paid form Cyprus as well as on royalties paid form Cyprus in respect of intellectual property exploited outside Cyprus. The nil withholding tax rates apply irrespective of whether the recipient is a body corporate or an individual, the county of residence of the recipient or whether a relevant double tax treaty exists.
Capital gains and income tax exemption for securities
Cyprus does not impose income or capital gains tax on the profits and gains derived from the disposal of securities, irrespective of whether the profits and gains are considered to be of a revenue or capital nature. Securities, as defined in the law, include shares, bonds, debentures, founder’s shares and other securities of companies or other legal persons incorporates under a Law of Republic of Cyprus or overseas and options over such securities.
Capital gains and income tax exemption for real estate
Cypriot companies can be used to hold real estate or other assets outside Cyprus with no Cypriot capital gains tax implications on disposal of the assets as capital gains tax only applies to gains on the disposal of immovable property which is situated in Cyprus or unlisted shares in a company which owns immovable property situated in Cyprus.
Local Talent:
- Cyprus has one of the youngest populations and workforce in the European Union (EU).
- The country has a strong and fast growing education system. Since 2000 enrolment in Cypriot universities has grown faster than in any other EU country.
- Almost half (46%) of the workforce has a tertiary degree, one of the highest percentages in the EU.
- Many Cypriots further strengthen their education by studying abroad — more Cypriots earn degrees from foreign universities than citizens of any other EU country.
- Cyprus has a booming private education sector. A greater proportion of students go to privately funded and managed schools than any other country in the EU.
Overview
- One of the best climates worldwide
- Top 5 safest country in the world (Value Penguin 2015)
- Top 4 best retirement destination globally (Knight Frank 2016)
- Most blue flag beaches per capita in the EU (Eurostat)