Why Cyprus

Why Cyprus2019-01-07T09:01:54+00:00

Main advantages of the tax system

  • Low corporate income tax rate 12,5%.
  • 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).
  • 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
  • Qualifying tax payers under the new Intellectual Property (IP) regime are eligible to a deduction equal to 80% of qualifying profits generated by qualifying assets.
  • No withholding tax on dividends paid to non-resident in the Republic.
  • Gains from the disposal of securities are exempt from taxation.
  • Profits from permanent establishment outside the Republic (subject to certain conditions).
  • Non-domicile Cyprus tax residents are exempt from special defence contribution on their worldwide income from dividends, interest and rent.
  • Extensive double tax treaties network (including Russia, Ukraine, India, UK etc.).

Other advantages

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

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