Cyprus, with its strategic location, great accessibility and excellent infrastructure, in combination with the numerous government incentives, is a prestigious tax-incentive EU financial center. Cyprus has substantially implemented the international agreed tax standards and is included in the ‘White List’ of OECD.

The numerous Double Tax Treaties concluded with other countries, offer tremendous possibilities for international tax planning through Cyprus.

It should be noted that Cyprus is one of the few countries in the world that has concluded tax treaties with Eastern European Countries.

Tax Incentives of Cyprus Companies

• Corporation tax rate 12.5%, lowest in Europe

• Established wide network of Double Tax Treaties with over 50 Countries

• Profits from sale of securities are tax exempt

• No withholding tax is imposed on the payment of dividends, interest or royalties, made from a Cyprus Company to any company or individual in any country of the world

• Dividend receivable by a Cyprus Company is tax exempt subject to certain criteria

• Dividend income received by the non-resident or non-domiciled individual, shareholder of the Cyprus Company, is not taxable is Cyprus

• Cyprus tax residents are taxable on their worldwide income

• Completely tax free interest from bank deposits held by non residents in Cyprus

• Tax losses can be carried forward for 5 years to be set-off against future profits

• Group relief is available whereby losses from a company can be set off against taxable profits of other companies in the same group

• Exemption from capital gains tax (except on sale of immovable property situated in Cyprus)

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