corporation tax in cyprus

Most favourable tax system in the EU
CYPRUS CORPORATE TAX HIGHLIGHTSCyprus stands out as a premium corporate tax planning jurisdiction due to the following key aspects:

  • Now with a 12.5% cap, Cyprus has the lowest corporate tax in the European Union – applies to both onshore and offshore companies. Corporate tax can be reduced to 0% since gains from trading in securities are completely exempt
  • No withholding tax on dividends, interest and royalties paid from Cyprus; Dividends to shareholders are tax free. There is no minimum participation on in bound dividends to qualify for tax exceptions
  • Profits from the sale of shares, bonds, debentures and other titles of companies established anywhere in the world are exempt from tax
  • Extensive double tax treaties network – Cyprus has double tax treaties with almost 50 countries, including the USA, UK, Canada, India, Ireland, EU countries, Russia, CIS, Singapore, Japan, China, South Africa and the UAE. Meanwhile, a further 40 treaties are being negotiated. These treaties have very beneficial provisions, which in combination with the tax credit offered in Cyprus on withholding tax suffered in the country of origin, can result to a more beneficial overall after-tax result than by using zero tax jurisdictions or tax exempt vehicles
  • 50% of income from interest derived by a Cypriot registered company is exempt from corporate tax
  • A 30% cap on personal income tax, together with high tax free threshold of just under €20,000
  • No inheritance or gift tax in Cyprus; No Net Wealth Tax
  • Free movements of profits derived from operation on non resident investments
  • Full capital gains tax exemption is given on capital gains
  • Salaries of foreign employees of offshore entities employed outside Cyprus are completely tax exempt
  • Access to EU directives
  • No Controlled Foreign Corporation legislation


Taxation Comparison in Other Countries

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