Main advantages of the Cyprus tax system

Cyprus is strategically located between Europe, Asia and Africa and is recognized as an international centre of excellence for the provision of professional services. A combination of its low tax regime, double taxation treaties network and legal system makes Cyprus a desirable location for the formation of intermediary holding companies. Cyprus offers one of the most attractive tax systems in Europe which is effective, transparent and fully compliant with the EU laws and regulations.
           
  Low corporate income tax rate ق€“ 12,5%   Gains from the disposal of securities are exempt from taxation
  Dividend income:

Received from a company resident in the Republic is not taxable

Received from a company non-resident in the Republic is not taxable (subject to certain conditions)

  Profits from permanent establishment outside the Republic (subject to certain conditions)
An 80% deemed deduction applies to the net profit from exploitation of intellectual property (effective tax rate up to 2.5%)
  No withholding tax on dividends paid to non-resident in the Republic   Extensive double tax treaties network (including Russia, Ukraine, India, UK etc.)
  Tax losses can be carried forward against taxable income over a period of five years from the end of the tax year in which they were incurred      

 

 

 

 

 

 

 

 

   Other Advantages      
  Advantageous geographical location and time zone   International airports serving a high number of international and European airlines
  Member of the EU since 2004 and Eurozone country since 2008   High standard of education
  High standard of living    High standard of professional services provided by lawyers, accountants, auditors, tax advisors and bankers
   English language is widely spoken   Banking sector (local and offshore bank corporations) offering online banking services
  Infrastructure that supports international business   Excellent telecommunication systems