CYPRUS TAX BENEFITS
• 12.5% Corporate tax rate – One of the lowest in the EU
• Tax exempt income includes:
Dividends (conditionally)
Profit from the sale of shares and other qualifying securities (unconditionally)
Profit from disposal of vessels
Profit attributable to foreign PE (conditionally)
Extensive Double Tax Treaties network
Access to EU directives
No thin-capitalization rules or D / E ratios
No withholding taxes no payments to non-residents (apart from royalties paid for IP economically lized in Cyprus)
• Company reorganization rules ensuring tax neutrality for group restructuring transactions• Exit tax rules (in general)
• No exit taxation rules(in general)
• Capital Gains Tax only gains from sale of real estate situated in Cyprus or sale of shares owning real estate situated in Cyprus (exemption applies if shares are listed on recognized stock exchange)
• IP Box regime :effective tax rate of 2.5% on profits from the use and sale of qualifying intangible assets
• Tonnage Tax regime
• Low tax rates
• Possibility to obtain tax rulings in advance by tax authorities provides flexibility and minimization of tax risk
• Tax incentives for expatriate employees taking up employment in Cyprus- 50% exception of remuneration from any office or employment exercised in Cyprus that exceeds €100.000 per annum by an individual who was not tax resident of Cyprus prior to the commencement of employment (applicable for 5 years )-20% exception with a maximum of €8.550 of remuneration from any office or employment exercised in Cyprus by an individual who was resident outside Cyprus before the commencement of his employment (applicable for 3 years)
• Stamp duty exception on contracts in relation to Cyprus flag vessel
• ‘Non-dom’ rules for Cyprus tax resident not domiciled in Cyprus. Any interest ,rents or dividends whether actual or deemed )regardless of whether such income is derived from sources within Cyprus and regardless of whether such income is remitted to a bank account to a bank or economically used in Cyprus ,is except from special defence contribution .