Important things to know and consider for Tax in Cyprus

The favourable provisions of the Cyprus tax legislation as well as the wide network of double taxation treaties makes a Cyprus holding company ideal for international tax planning purposes.

The main advantages of the Cyprus tax system are summarized below:

• 12.5% uniform corporate tax on trading profits.
• Dividend income received from abroad is exempt (subject to conditions).
• Dividends received from non-domicile recipients tax-exempt are (subject to conditions).
• Capital gains from the sale of immovable property situated outside Cyprus is tax exempt.
• Taxable losses carried forward, for up to 5 years.
• Capital gains on sale of qualified Securities: 100% exemption.
• No withholding tax on outward payments (Dividends-Interest-Royalties) to non Cyprus tax residents (companies or individuals).
• Foreign Permanent Establishment profits exempt (subject to conditions).
• Tax free corporate re-domiciliation permitted.
• Tax benefits through Double Tax Treaties with many countries.