Cyprus Tax

The main reason people choose to register a company in Cyprus is that it offers one of the lowest rates of taxation,  along with a plethora of other advantages, while at the same time being a full member of the European Union.

Cyprus tax benefits include:

  1. Taxable profits of all Cypriot companies are taxed at the rate of 12.5% – one of the lowest in the EU.
  2. Gains from the disposal of securities are exempt.
  3. Profits earned from a permanent establishment abroad are fully exempt from corporation taxation, under certain conditions.
  4. Dividend income received in Cyprus from a foreign corporation is wholly exempt from taxation in Cyprus, under certain conditions.
  5. Interest income earned from trading activities, including interest which is closely related to trading activities, is subject to income tax at 12.5%.
  6. No withholding tax on dividends and interest paid to non-residents of Cyprus or on Royalties arising from sources outside Cyprus.
  7. Group relief provisions for companies resident in Cyprus.
  8. Re-organisations, mergers, acquisitions and amalgamations of companies have no tax implications.
  9. Capital gains are not subject to taxation except on sale of immovable property situated in Cyprus.
  10. Cyprus has an extensive double tax treaty network.

We can assist you in all tax-related matters including:
Corporate taxes, withholding taxes, capital gains taxes, capital and transfer taxes, transfer pricing issues, double tax treaty issues, EU Directives and planning, trusts and corporate tax planning, trusts and personal tax planning, preparation and filing of corporate tax returns, appeals against assessments issued by the Inland Revenue, negotiations with the authorities to reach an agreement on adjustments made by them, payroll services for the PAYE of all employees, preparation and filing of VAT returns, negotiation with the VAT authorities and efficient VAT Recovery

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