Cyprus is a long established reputable International Financial Centre. Cyprus is considered to be one of the most developed and efficient business locations in Europe mainly because of the highly skilled human resources, the pro-active business attitude, the excellent telecommunications infrastructure and the favourable tax system. Cyprus has the lowest general corporate income tax rate in the EU (12,5%), and an extensive double tax treaties network. Cyprus has an attractive business environment with high skilled workforce specializing in financial and professional services.
Cyprus tax regime
• 12,5% corporation tax only.
• Dividends are usually exempt from taxation.
• Gains from trading in titles are exempt from taxation.
• Profits of a Permanent Establishment abroad are usually exempt from Cyprus taxation.
• No withholding tax imposed in Cyprus on payments of interest, dividends and in most cases of royalties (tax free repatriation).
• Accessibility to an extensive network of Double Tax Treaties and the EU Directives.
• Advance interpretations of the tax law may be provided by the Cyprus tax authorities (tax rulings).
• 80% of worldwide qualified royalty income generated from qualified IP owned by Cyprus resident companies (net of direct expenses) is exempt from income tax. Also, 80% of profit generated from the disposal of qualified IP owned by Cyprus resident companies (net of any direct expenses) is exempt from income tax as well.