News/Tips

• Net profits of companies and international branches managed and controlled from within Cyprus are taxed at a flat rate of 12,5 %.
• Profits from the sale of shares and other financial instruments that carry a title such as bonds and debentures are exempt from taxation.
• International business branches which are managed and controlled from abroad and international business Partnerships are fully exempt from Corporation or Income Tax.
• Dividend income under certain conditions is fully exempt from tax.
• Tax relief available for new equity introduced in a company in the form of Notional Interest Deduction.
• Receivable interest not arising from the ordinary or closely related to the ordinary business activities of the company is fully exempt from taxation (subject to Special Contribution for Defence).
• No taxation on Capital Gains arising from the sale of property abroad (including shares, immovable property and excluding sale of immovable estate situated in Cyprus).
• Availability of tax deductions for physical persons for risk financing investments made in innovative small and medium enterprises.
• No withholding tax on dividend distribution and payments of interest and royalties.
• Special deductions for the development and exploitation of Intellectual Property (IP) rights.
• No tax on profits from the operation or management of a vessel registered under the flag of Republic of Cyprus.
• Ability to choose between tonnage tax and 4,25% Corporation Tax under certain conditions.
• Profit margin on back to back group financing loans can be as low as 0,125%.
• Tax losses can carried forward for up to 5 years.
• Tax relief for group of companies through utilisation of tax losses.
• Double tax treaties with a large number of countries.
• No exchange control restrictions (bank accounts in any currency and in any country).
• Confidentiality and anonymity on the beneficial owners.