Summary of Tax Benefits

 

The favorable provisions of the Cyprus tax legislation as well as the wide network of double taxation treaties make the Cyprus holding company ideal for international tax planning purposes. The main advantages of the Cyprus tax system are summarized below:

 

 

•  12.5% uniform corporate tax on trading profits*;

•  Dividend income received from abroad is exempt (subject to conditions);

•  No thin capitalisation rules;

•  Capital gains from the sale of immovable property situated outside Cyprus is tax exempt;

•  Taxable losses carried forward indefinitely;

•  Capital gains on sale of qualified Securities: 100% exemption;

•  No withholding tax on outward payments (Dividends-Interest-Royalties) to non Cyprus tax residents (companies or individuals);

•  Foreign Permanent Establishment profits exempt (subject to conditions);

•  Tax free corporate re-domiciliation permitted;

•  Possibility for establishing an SE (European Company);

•  Applicability of all EU directives;

•  Advance ruling practice exists;

•  Extensive Double Tax Treaty network;

 

* The increase of the tax rate at 12,5% was imposed in the terms agreed in the Memorandum of Understanding between Troika and the Government of Cyprus. The increase applies from tax years 2013 onwards.

 

Serviced Offices / Business Centres

 

There are several serviced offices offering facilities both in Nicosia and Limassol towns. High tech fully equipped office buildings with qualified personnel and top amenities are available.

 

 

Summary of Tax Benefits | Corporate Tax Provisions | Personal Income Tax

 

For more information please refer to KPMG website www.kpmg.com.cy