Tax incentives why to choose Cyprus

• Corporation tax on net profits is only 12.5%.
• Dividend income is tax exempt.
• Profits realized on disposal of securities/shares in subsidiaries, bonds, derivatives, stocks etc., are not subject to taxation in Cyprus. This applies to all gains including capital gains and gains from trading in securities.
• A notional interest deduction (NID) is allowed on paid, newly introduced capital.
• Being a European Union (EU) jurisdiction.
• Cyprus has a wide network of double tax treaties providing zero or low withholding tax rates on interest, dividends and royalties.
• There is no withholding tax on dividend, interest and royalties paid to non-resident individuals and corporations.
• Interest paid to non-resident group companies is tax deductible.
• Intellectual Property (IP) including copyrights, patented inventions and trademarks has an exemption of 80% of the overall profit derived from the qualifying intangible asset; the following rule applies for intellectual property assets developed after 30 June 2016.
• There are no general transfer pricing rules but transactions between related parties should be at “arm’s length”.
• Losses are offset against other sources of income, are carried forward for five years and can be set off against profits of another company of the same Group (Group of Cyprus tax-resident companies).
• Capital gains are not taxable in Cyprus except for the 20 % tax on gains on immovable property that is located in Cyprus.

List of double tax treaties between Cyprus and other countries.

List of the Double Tax Agreements concluded between the Republic of Cyprus and other Countries, as well as the text of each published Agreement, can be found in the official website of the Ministry of Finance (http://mof.gov.cy/en/taxation-investment-policy/double-taxation-agreements/double-taxation-treeties).

It is noted that, the Double Tax Agreement between Cyprus and Norway which was concluded between Norway and the United Kingdom, is only available in the English language. Additionally, the Agreement concluded between Cyprus and France is only available in the English language. The other Double Tax Agreements are available in both the Greek and the English language.