Cyprus Tax Facts

Cyprus Tax Facts

  • Cyprus has developed a wide network of Double Tax Agreements with no less than 56 countries to ensure that the same income is not taxed in more than one country. Cyprus is in the stage of negotiating the conclusion or awaiting ratification of Double Taxation Agreements with several more countries.
  • There is a Corporate Tax Rate of just 12.5%, which is one of the lowest in the European Union.
  • There are no Controlled Foreign Corporation Rules.
  • There are no Thin Capitalisation Rules.
  • Capital Gains from the sale of immovable property situated outside Cyprus are tax-exempt.
  • All Capital Gains on sale of securities are 100% exempt.
  • There is no Withholding Tax on outward payments.
  • There is Group Relief availability (75% holding).
  • There are Tax Free Reorganisations (cross border permitted).
  • All Foreign Private Equity profits are tax-exempt.
  • Tax Free Corporate Redomiciliation is permitted.
  • There is a Possibility for Establishing an SE (European Company).
  • All EU Directives are applicable.
  • The Advance Ruling Practice exists.
  • The Capital Duty on the issue of Share Capital is 0.6% (this can easily be mitigated).
  • The Notional Interest Deduction granted annually on new capital issued from 1 January 2015.
  • Individual who is tax resident of Cyprus but he is "not-domiciled" in the Republic of Cyprus, will be exempt from Special Defence Contribution.
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