Capitalise on the beneficial tax system in Cyprus.
Cyprus is an established and reputable international financial centre. The country has rapidly developed as one of the most sought after financial centres in the EU. It is an EU Member State since May 2004 and Eurozone member since 2008. It offers significant business opportunities to investors and trading partners.
The prevailing pro-business attitude, the multi-lingual and world-class workforce, the state-of-the-art telecommunications infrastructure and the favourable tax system have helped the island become a leading business location in Europe.
The main taxation benefits for International Business Companies are:
- The lowest Corporation Tax in the EU, at 12,5%;
- Gains from titles transactions are tax exempt;
- Available group loss relief;
- Cyprus has signed double tax treaties in place with more than 45 other countries;
- Foreign dividend income is tax exempt (conditions apply);
- Profits from a Permanent Establishment abroad are exempt from Corporation tax (conditions apply). At the same time, losses from Permanent Establishments abroad are allowed to be deducted from Companies Profit as a tax relief;
- 80% of Royalty Income is exempt from Corporation Tax;
- 80% on Gains from the disposal of Intellectual Property(IP) is exempt from Corporation Tax;
- Dividend income is not taxable for non-residents;
- Any sale of property outside Cyprus is not taxed under Capital Gains Tax;
- Possibility to apply to Commissioner of Income Tax for a ruling for any tax matter you wish to obtain the written opinion of the Commissioner of Income Tax.
Relocating to Cyprus:
Cyprus has introduced new motives to corporate executives and wealthy individuals to become residents in Cyprus. Specifically:
- Individuals with salaried income over €100.000 that were tax residents abroad before employment in Cyprus, are entitled to a 50% income tax exemption for the first five years.
- Non Domiciles residents are exempt from Defence tax on income such as interest and dividend. This applies until a tax resident has been a tax resident in Cyprus for at least 17 years out of the last 20 years, prior to the tax year.
- Investors are allowed to acquire the Citizenship by Naturalisation, given that certain criteria are met.
