Cyprus is the third largest island in the Mediterranean Sea, after Sicily and Sardinia, situated at the hub of three continents: Europe, Asia and Africa. Its 9,251 square kilometres encompass pine forested mountains as well as some of Europe's cleanest beaches. The island enjoys the best type of Mediterranean climate with abundant sunshine even in winter.
Cyprus is a long established and reputable international financial centre. It has gained this enviable position through its attractive tax system, transparent legal system, world-class professional and banking services and superior global telecommunications capabilities.
Cyprus is a full member of the European Union and Eurozone. It is fully compliant with the EU Directives and Code of Conduct for Business Taxation and against harmful tax competition. Cyprus proudly features on the Whitelist of OECD and has legally committed to the highest standards of transparency which is an essential criterion for successful businesses in today's world.
Cyprus being a full member of the EU provides a unique combination of favorable participation exemption provisions on income emanating from international activities, applies a wide network of double tax treaties and zero withholding taxes on any type of payments made anywhere in the world.
Cyprus is now considered as one of the premier holding company jurisdictions and is also utilized in other types of tax structures e.g., financing, agency, shipping structures and much more.
Main Cyprus Tax Features
- Uniform corporate tax rate of 12.5%
- No inheritance tax
- No capital gains tax, except on immovable property in Cyprus
- No tax on disposal of securities
- No tax on any profits from a PE situated outside Cyprus
- No taxes to be paid on liquidation
- No taxes on dividends received (subject to conditions)
- No withholding tax on payments to non-residents with the exception to the EU non cooperative jurisdictions on tax matters (dividends, interest, royalties)
- No capital taxes or net worth taxes
- No thin capitalization rules
- Unilateral tax relief provisions
- Tax losses may be carried forward over the next five years
- Notional interest deduction
- Favorable shipping tax provisions
- Tax ruling practice
- Company formation
- Corporate legal
- Accounting & reporting
- Tax & VAT compliance
- Information technology
- Integrated services
- Financial advisory
- Human capital & payroll
- Local presence
- Relocation and immigration