Cyprus Tax System

 

Cyprus Tax System

 

 

CYPRUS AS AN INTERNATIONAL BUSINESS CENTER

 

The role of Cyprus in the international business world has increased dramatically due to the numerous benefits it has to offer; Cyprus is now considered one of the most favoured jurisdictions in Europe from which to conduct international business.

Cyprus attracts investors and entrepreneurs from around the globe who aim to develop their companies, and run their international commercial and financial operations through Cyprus.

These investors are involved in sectors such as high technology, research and development, tourism, commerce, real estate and business related services.

As a full member of the European Union since 2004, Cyprus has been established as a prestigious, stable and attractive jurisdiction. Although Cyprus is a low tax jurisdiction, is not a “tax haven”, and due to its favourable tax regime and the wide network of tax treaties it has attracted businesses from around the globe to establish International Business Companies with the purpose of carrying and monitoring their international business operations.

In Cyprus, professional business services are rendered at the highest standards. The results are high quality, cost effective consultancy services and continuous support to professionals worldwide.

 

HIGHLIGHTS OF CYPRUS TAX SYSTEM

 

• Corporate income tax rate of 12.5%
• No taxation of capital gains (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus)
• Access to EU directives (e.g. Parent-Subsidiary)
• Extensive double tax treaty network with over 60 countries
• No withholding taxes on Dividends, Interest and Royalties
• Tax-relief for group losses can be claimed
• No Controlled Foreign Company (CFC) rules
• Foreign tax relief on income subject to both Cypriot and overseas tax
• Attractive Intellectual Property regime (effective corporate tax rate 2,5%)
• No tax on dividends, interest and rental income of non-domiciled individuals
• Advance Tax rulings from Income Tax Office

CYPRUS AT A GLANCE

International Memberships
Business Center
  • European Union
  • Euro Zone
  • United Nations
  • Council of Europe
  • Commonwealth
  • World Bank
  • International Monetary Fund
  • European Commission
  • Committee on Security and Cooperation in Europe
  • World Trade Organization
  • Lowest Corporate tax among EU countries
  • Business hub offering access to all markets
  • Business language is English
  • Foreign Direct Investment (FDI) ranking
  • Efficient & professional banking services.
  • Business opportunities (trade, shipping, energy, real estate, tourism)
  • Cyprus – EU: Main energy hub
  • English Legal System
Quality of Life
Natural Beauty
  • High educational standards
  • High quality of life
  • Life expectancy: 81.65
  • First Class health care
  • Genuine hospitality
  • Mediterranean cuisine
  • Passport Power Rank: 8th (by Passport Index)
  • Ranked as the 5th best relocation destination in the world for entrepreneurs, families and retired couples
  • Beautiful coastlines
  • Crystal clear waters – the Largest number of blue flag beaches per coastline in the World.
  • Cleanest sandy beaches in Europe
  • Island in the sun: Amazing weather with 340 days of sunshine
  • Cyprus is classified as the sunniest European location
Excellent Location
  • Strategic location- at the crossroads of Europe, Africa, and Asia
  • 3rd Largest Island in the Mediterranean
  • Convenient airline connections and excellent telecoms
  • Reputable International Shipping Centre