Cyprus Taxation

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