• 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 .