International Tax Planning
Cyprus offers a range of alternative tax advantages to foreign companies conducting business on the island. Such advantages derive from the country’s favorable legislation as well as from the wide network of double taxation treaties. In brief, the main provisions of corporate taxation are:
- Uniform corporate tax rate of 12.5%
- Double Taxation Treaties with over 63 countries
- No withholding taxes on dividends, interest and royalties to non-residents
- Favorable tax treatment of losses
- No tax on capital gains from disposal of securities listed on a recognized Stock Exchange
- No tax on profits from permanent establishment outside Cyprus, subject to conditions
- No capital gains tax or net worth taxes, except on sale of immovable property situated in Cyprus
- Holding companies satisfying minimum requirements can be established with 0% tax rate on dividends, making Cyprus the most competitive jurisdiction for holding companies
- Freely transferable currency accounts (in any currency) can be kept both in Cyprus and abroad
- No exchange control restrictions
- Strictly confidentiality of the real owners
