Cyprus Tax Regime
Cyprus has been one of the most attractive tax regimes worldwide since 2003, and a Cypriot holding company is held to be a globally strong investment vehicle.
Cyprus has the lowest corporate tax rate in the EU at 10%. The island also holds a number of international double taxation treaties with other countries, accordingly, Cyprus is proud to enjoy one of the most business-friendly legislative frameworks and infrastructure in the European Union.Salient Benefits Of The Cypriot Taxation System:
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Corporations investing from outside Cyprus are exempt from
tax on dividend income into a Cypriot holding company. |
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Investment interest and royalty payments into Cypriot companies are
exempt from taxation. |
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No taxation over securities transactions. |
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Tax free future unwinding of Cypriot holding companies is available when
an exit strategy is planned. |
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Corporate Tax in Cyprus is only 10% on dividends from underlying subsidiaries
of a Cyprus Holding Company, either through a double taxation treaty,
or under the Parent/Subsidiary Directive (EEU 90/435). |
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Dividends received from outside Cyprus are subject to the special defence
contribution at 15%; however exemption can nearly always be granted,
effectively resulting in tax free dividends; always provided that the
company has a permanent base in Cyprus, and holds at least one per cent
(1%) share capital of the dividend paying company. |
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Outgoing dividends paid to external countries are not taxed at source. |
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Capital Gains Taxation exempt on the sale of immovable property outside
Cyprus. |
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A Cypriot company can be capitalized entirely from loans, and interest
paid to parent companies is tax deductible. |
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Corporate losses can be carried forward indefinitely. |
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Individuals living in Cyprus for over 183 days per year pay only 10%
tax on company profits. |
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Cypriot registered shipping companies are tax exempt. |