Attractive Tax Environment

Cyprus has a simple, transparent and attractive tax regime fully compliant with EU and OECD standards having the following main characteristics:

  • General corporate tax rate of 12,5% on profits and one of the lowest effective corporate tax rates in the EU;
  • Dividend income, profits from overseas permanent establishments and profits from the sale of securities are exempt from tax;
  • No withholding tax on dividend, interest and royalty paid from Cyprus;
  • Unilateral credit relief for foreign taxes;
  • No capital gains tax/ except on real estate situated in Cyprus;
  • No detailed transfer pricing rates (arm’s length principle only);
  • Group loss relief;
  • No wealth taxes and only minimal stamp duties;
  • Most international transactions are free of VAT charge;
  • 80% exemption of royalty income and gains from disposal of intellectual property;
  • Wide network of favourable Double Tax Treaties with fifty key jurisdictions;
  • Generous tax exemptions for non-resident individuals taking up highly paid employment in Cyprus.