Cyprus Tax Advantages
Cyprus also has a simple and transparent tax system with a low corporate income tax rate of 12.5% and multiple exemptions at both the corporate and individual level. The advantages of the Cyprus tax system are as follows:
01
Access to EU directives
02
Extensive double tax treaty network with over 60 countries
03
Dividend participation exemption (subject to conditions)
04
Exemption from tax on gains from the disposal of securities
05
Notional Interest Deduction on equity applies to all taxpayers and all business activities
06
No withholding taxes on interest and dividends
07
No taxation of capital gains (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus)
08
No succession taxes
09
No Controlled Foreign Company (CFC) rules
10
Tax neutrality on foreign exchange differences unless they arise from trading in currencies or currency derivatives
11
Foreign tax relief on income subject to both Cypriot and overseas tax
12
Exemption on profits of foreign permanent establishments (subject to conditions)
13
Company reorganisation rules based on the EU Mergers Directive allow for tax-neutral group restructuring
14
Attractive Intellectual Property regime in line with ‘modified nexus approach’
15
No exit tax rules
16
50% exemption on employment income exceeding €100,000 per annum for non-residents taking up employment in Cyprus
17
No tax on dividends, interest and rental income of non-domiciled individuals.
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