Cyprus Company Tax Benefits explained by CYAUSE Audit Services Ltd


Main Tax Benefits

  • Corporation Tax Rate at 12.5%
  • Trading in Securities is Tax-Exempt
  • Foreign Dividend Income Exemption
  • No Withholding Taxes, in most cases
  • Attractive Permanent Establishment (PE) rules
  • Beneficial Double Tax Treaty Network
  • Tax Losses Carried Forward for Five Years and surrendered as Group Relief

Additional Tax Benefits

  • No Capital Gains Tax for properties held abroad.
  • Corporation Tax rate of 0% for Shipping companies, 4.25% for Maritime Management Companies
  • Re-Organizations (Mergers, Takeovers) within a group can take place without Tax consequence
  • Unilateral Tax-Relief for foreign tax suffered by all Cypriot companies
  • Interest Deduction for Borrowing
  • Registration for EU VAT
  • Low Duties - Taxes on the establishment of companies

Extensive Double Tax Treaty Network