Cyprus Tax Advantages

Due to its geographical position Cyprus acts as a connection between Europe, Africa and Asia for foreign investors wanting to transact their business in a well organized and efficient manner. Cyprus governmental structure is modeled on Western Democratic systems and follows closely the United Kingdom legal system.

Cyprus’ favorable tax regime in combination with a well-regulated and secure financial infrastructure and the provision of high level of banking, accounting, auditing, taxation, and legal services have always been the reasons organizations from all around the world choose Cyprus. The numerous advantages, deductions and exemptions offered, place Cyprus as one of the most attractive and competitive financial centers worldwide. International Business Companies that are serviced from Cyprus are provided with an increased reputation over other offshore jurisdictions, due to its EU membership and regulated environment.


  • 12,5% tax rate on taxable profits
  • No withholding tax on dividends interest and royalties paid from Cyprus to non-resident shareholders
  • Dividends received by a Cyprus tax resident company from overseas are exempt from corporate income tax, provided they are not allowed as a tax deduction in the jurisdiction of the foreign paying company (Hybrid structures). Dividends received from overseas are also exempt from Special Defence Constibution (SDC) under certain conditions
  • No tax on the disposal of shares, bonds, debentures
  • Profits of a permanent establishment maintained abroad by a Cyprus company are exempt from tax in Cyprus under certain conditions
  • Profits on sale of property (other than property in Cyprus) are not subject to Capital Gains Tax
  • A long list of countries have signed Double Tax Treaties with Cyprus
  • There are no restrictions on import and export of currency
  • Attractive IP regime
  • Tonnage tax for shipping companies
  • Personal tax exemptions for new residents
  • Strong infrastructure and educated workforce

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