Tax Planning

Cyprus is committed to the OECD guidelines to eliminate harmful tax competition initiatives against harmful tax practices, in light of which the tax system in Cyprus underwent some major reforms, which however have rendered Cyprus to be in a stronger position and retain its attractiveness as a base for international business.

With one of the lowest tax rates in Europe, combined with its extensive double taxation treaties network, its convenient location and time-zone, as well as the mature, professional legal, accounting and banking services, Cyprus is highly-ranked amongst investors and international tax planning specialists. Together with all the additional benefits provided by the Cyprus tax law in relation to Dividends, Interest and Royalties, it makes Cyprus companies more attractive in the context of tax planning structures

Key benefits offered

  • Introduction of the concept of tax resident and non-resident companies
  • Taxation of worldwide income for tax residents and Cyprus-sourced income for non-residents
  • A uniform corporate tax rate of 12.5%
  • Tax-exempt business profits of non-resident companies
  • Tax-exempt gains on the trading and disposal of securities
  • Tax-exempt dividend income (subject to applicable criteria)
  • Tax-neutral group reorganisations
  • Tax-relief for group losses
  • Full adoption of the EU Parent-Subsidiary Directive
  • Full adoption of the EU Mergers Directive
  • Full adoption of the EU Directive on Mutual Assistance and Cooperation
  • Full adoption of the EU Royalty and Interest Directive

Our team of tax experts stand ready to offer our clients advise as to optimal tax structures in accordance with their specific requirements and circumstances.

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