Thousands of companies are registered in Cyprus every month, because of its business-friendly Tax Regime, making it the best place to do business in the EU.
Some of the many benefits, that Cyprus Companies receive from the Cyprus Tax Regime are:
- One of the lowest Corporation tax rates in EU – 12.5% on profits
- Full exemption from profits generated from securities i.e. shares/bonds
- The distinction between “domicile tax residents” and “non-domicile tax residents” (Company or Individuals).
- Flexible reorganisation rules with tax benefits
- Carrying forward of tax losses for 5 years
- Unilateral Tax Relief rule for taxes paid abroad
- Notional Interest Deduction (NID) on new equity invested from 2015 onwards replacing the back to back financing arrangements.
- Exemption from Dividend Income Tax based on the EU – Parent Subsidiary Directive
- Purely Holding Companies are outside the scope of VAT in Cyprus
- Extremely attractive IP Box allowing for an effective Corporation Tax at 2.5% on qualifying profits.
- No withholding tax on interest, royalty and dividends payments to “non-tax resident individuals”.
- Full tax group relief.
- Over 60 Double Tax Treaties.