Tax Advantages

Cyprus has a favourable tax regime. The corporation tax is only 10% on business profits which can be further reduced through the use of double tax treaties. The main advantages of Cyprus tax legislation are:

• Favourable tax rate of 10%

• No tax on disposal of securities

• No capital gains tax except from sale of immovable property located in Cyprus

• Tax legislation approved by the European Union

• Profits from permanent establishment abroad are fully exempt subject to conditions

• Dividend income is tax exempt subject to conditions

• Low profit margin for financing companies is allowed

• No withholding taxes on royalties payable to non-resident

• Extensive list of Double Tax Treaties reducing withholding taxes up to 0% on dividends, interest and royalties outside Cyprus

• No withholding taxes on payments of dividends, interest and royalties outside Cyprus

• Tax losses are carried forward indefinitely

• Access to EU parent subsidiary directive

• Access to EU interest and royalties directive

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