Cyprus is the third largest island in the Mediterranean Sea, after Sicily and Sardinia, situated at the hub of three continents: Europe, Asia and Africa. Its 9,251 square kilometres encompass pine forested mountains as well as some of Europe's cleanest beaches. The island enjoys the best type of Mediterranean climate with abundant sunshine even in winter. The island provides a perfect climate for summer holidays.
Cyprus is a long established and reputable international financial centre. It has gained this enviable position through its attractive tax system, transparent legal system, world-class professional and banking services and superior global telecommunications capabilities.
Cyprus’s accession to the EU on 1 May 2004 has come to add to the country’s impressive advantages. The full acceptance by Cyprus of the European Union Code of Conduct and the Campaign against Harmful Tax Competition has added much to the reputation of Cyprus, as having a very competitive but internationally respected tax legislation.
Cyprus’s accession to the EU on 1 May 2004 has come to add to the country’s impressive advantages.
This has created excellent opportunities for tax professionals to establish Cyprus as a major financial centre within the European Union, developing Cyprus from an alleged tax haven into a country that has a modern, legal and competitive tax environment. Cyprus is now considered as one of the premier holding company jurisdictions and it is also utilised in other types of tax structures e.g. financing, agency, shipping structures and much more.
Main Cyprus Tax Features
- Uniform corporate tax rate of 12.5%
- No inheritance tax
- No capital gains tax, except on immovable property in Cyprus
- No tax on disposal of securities
- No tax on any profits from a PE situated outside Cyprus
- No taxes to be paid on liquidation
- No taxes on dividends received (subject to conditions)
- No withholding tax on payments to non-residents (dividends, interest, royalties)
- No capital taxes or net worth taxes
- No Control Foreign Companies (CFC) rules
- No thin capitalisation rules
- Unilateral tax relief provisions
- Tax losses carried forward (no time limit)
- Favourable shipping tax provisions
- Tax ruling practice
- Company formation
- Corporate legal
- Accounting & reporting
- Tax & VAT compliance
- Information technology
- Integrated services
- Financial advisory
- Human capital & payroll
- Local presence