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 abroad.
  • 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.