Even though the majority of our clients uses zero tax jurisdictions a sizeable number uses the Cyprus Companies as a vehicle to trade within the European Union and take advantage of VAT rules as well as significant double tax treaties signed by the Republic of Cyprus which ensures taxation is kept at a minimum. 

Tax benefits enjoyed by Cyprus companies owned by our international clients

• Corporation tax rate of 12.5%
• Trading in securities is exempt
• Foreign dividend income exemption
• No withholding taxes, in most cases
• Attractive permanent establishment (PE) rules.
• Extensive network of favourable double tax treaties
• Tax losses can be carried forward for five years and be surrender as group relief

Additional tax benefits

• No capital gains tax for properties held abroad
• Interest deduction for borrowings
• EU Registration with VAT, VIES and Intrastat
• Low duties - taxes on the establishment of companies
• Unilateral tax-relief for foreign tax suffered by all Cypriot companies
• Re-Organisations (Mergers, Takeovers) within a group can take place without tax implications
• 0% Corporation Tax for shipping companies
• 4.25% Corporation tax for maritime management companies

View Cyprus Double Tax Treaty Network

Main Services Offered to our International Clients