Tax Incentives for Cyprus Companies
Main Tax Benefits
Corporation tax rate of 12.5%.
Trading in securities is tax-exempt.
Foreign dividend income exemption.
No withholding taxes, in most cases.
Attractive Permanent Establishment (PE) rules.
Beneficial double tax treaty network.
Tax losses carried forward for five years and surrendered as group relief.
Additional Tax Benefits
No capital gains tax for properties held
- Corporation tax rate of 0% for shipping companies, 4.25% for maritime management companies.
- Re-Organizations (Mergers, Takeovers) within a group can take place without tax consequence
- Unilateral tax-relief for foreign tax suffered by all Cypriot companies.
- Interest deduction for borrowing.
- Registration for EU VAT.
Low duties - taxes on the establishment of companies.