Cyprus is a legitimate and competitive tax jurisdiction offering significant tax advantages for international businesses and foreign investors.

The most important tax advantages of the Cyprus jurisdiction are the following:

• One of the lowest corporate tax rates in the European Union – 15% (12.5% up to year 2025)

• Zero withholding tax on dividends when the beneficial owner is not tax resident in Cyprus, or where the beneficial owner is a Cyprus tax resident non-domiciled individual

• Dividends received by Cyprus companies are generally exempt from corporate income tax
  For dividends received from abroad, the exemption generally applies provided that:

  a) Not more than 50% of the direct or indirect activities of the company paying the dividend result in investment income; or

  b) The foreign tax burden on the dividend-paying company’s income is not lower than 50% of the corresponding Cyprus tax burden

• Zero capital gains tax on the Sale of Shares, subject to Cyprus immovable property rules
  Cyprus companies may be used to hold real estate or other assets outside Cyprus with no Cyprus capital gains tax implications on the disposal of such assets, as Cyprus capital gains tax applies mainly to gains from the disposal of immovable property situated in Cyprus and, subject to the detailed provisions of the relevant legislation, to gains from the disposal of shares in companies which directly or indirectly own immovable property situated in Cyprus.

• Profits from a permanent establishment abroad are generally exempt from tax
  Profits from a permanent establishment abroad are generally exempt from Cyprus tax, unless more than 50% of the permanent establishment’s activities directly or indirectly result in investment income and the foreign tax burden is significantly lower than the corresponding Cyprus tax burden.

• Wide network of double tax treaties with more than 65 countries around the world
  Most Cyprus double tax treaties provide for reduced or nil withholding tax rates on dividends, interest and royalties, and include provisions for the elimination or relief of double taxation where a resident of one treaty country derives income from the other treaty country.

• Unilateral foreign tax credit relief
  Where income is subject to Cyprus tax, relief for foreign tax paid on that income may be available in the form of a tax credit. The relief may be granted unilaterally, irrespective of whether a double tax treaty exists. Where a double tax treaty exists, the treaty provisions apply if more beneficial.

• Carry forward of tax losses for seven years.

• Substantial income tax relief for individuals taking up employment in Cyprus
  Individuals who were not Cyprus tax residents before taking up employment in Cyprus may benefit from substantial income tax relief for a number of years after commencing employment, subject to the conditions and limits of the applicable legislation.