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ГЛАВНАЯ  /  BLOG  /  THE ATTRACTIVE CYPRUS TAX SYSTEM

The Attractive Cyprus Tax System

The Attractive Cyprus Tax System

  • Low corporate income tax rate of 12.5% EU & OECD
  • Compliant Access to EU directives (e.g. Parent-Subsidiary)
  • Extensive double tax treaty network with over 60 countries
  • Dividend participation exemption (subject to conditions)
  • Exemption from tax on gains from the disposal of securities (e.g. shares, bonds)
  • National interest deduction on equity applies to all taxpayers and all business activities
  • No withholding taxes on interest and dividends
  • No taxation of capital gains (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus)
  • No succession taxes
  • No Controlled Foreign Company (CFC) rules
  • Tax neutrality on foreign exchange differences unless they arise from trading in currencies or currency derivatives
  • Foreign tax relief on income subject to both Cypriot and overseas tax
  • Exemption on profits of foreign permanent establishments (subject to conditions)
  • Company reorganization rules based on the EU Mergers Directive allow for tax-neutral group restructuring
  • Attractive Intellectual Property regime in line with “modified nexus approach” (OECD Action 5)
  • No exit tax rules
  • 50% exemption on employment income exceeding €100,000 per annum for non-residents taking up employment in Cyprus

Author: Elena Moisidou

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