logo

CYPRUS TAX LAW AND TAX PLANNING

Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations. Its main features are:

  • One of the lowest corporate income tax rates in the EU at 12.5%
  • Dividend participation exemption
  • Exemption on disposal of securities (e.g. shares, bonds, debentures)
  • No withholding taxes on dividend, interest and royalty payments abroad
  • No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains are attributable to the real estate holding)
  • No succession taxes
  • Attractive IP regime
  • Tonnage tax for shipping companies
  • Notional interest deduction for investments into Cyprus companies
  • Personal tax exemptions for new residents and non-domiciled individuals
  • More than 60 double tax treaties

Cyprus has a large double tax treaty network and this has a result to avoid the double taxation of income earned in any of the two contracting countries. The low tax that a company of Cyprus has to pay in combination with the existence of the treaties mention above provides the best possibilities and conditions for effective and successful international tax planning. Individual tax resident of Cyprus is the person who resides for 183 days in the year of assessment in the Republic. The residents of Cyprus are taxed on income which is earned both out and in Cyprus. In contrast with this all the non-residents of Cyprus are taxed only on income which is earned in Cyprus. Below you can see the income tax rate for 2008.

Taxable Income (€)
Tax Rate (%)
0 - 19.500

0

19.501 - 28.000

20

28.001 - 36.300

25

> 36.300

30

Dividends are exempted from income tax. Subject to certain conditions, dividends are subject to special contribution for the defence at the rate of 15%, applicable only to residents.

 

TAX PLANING

Our tax planning specialists no matter how complex the transaction is can provide you with professional assistance and advice in all matters related to tax planning. Our effort is to ensure that all our clients order and demands are met in an effectively and promptly manner. Our services include:

International Tax Structuring and Consultancy

  • Identifying efficient routes for structuring international investments and transactions
  • Reviewing and advising on existing or proposed structures
  • Transfer Pricing aspects
  • Permanent Establishment issues
  • Substance issues
  • Tax aspects of cross border mergers, acquisitions and disposals
  • Tax structuring involving trusts, companies and other vehicles
  • Application aspects of Double Tax Treaties and EU Directives

Cyprus Tax and VAT

  • Negotiation of tax rulings with the Cyprus Inland Revenue
  • Tax Reports
  • VAT advisory services
  • Tax Opinions
  • Tax comments on international transactional Step Plans
  • Tax Rulings
  • Personal taxation and Tax planning for high net wealth individuals
  • Tax Clearance for Company Reorganisations
  • Capital Gains Tax
  • Obtaining tax residence certificate

Tax advisory on various types of Cyprus companies

  • Liaising with the tax authorities regarding the company’s tax affairs
  • Offshore tax planning
  • Assistance in submitting the company’s tax returns
  • Holding activities
  • Portfolio holdings
  • Financing activities
  • Trading activities
  • Intellectual Property
  • Real estate holdings

For further information please contact us at info@hadjisterkotislaw.com

Emergency Cases

Call Us Now

+357 25 354 782, +357 25 355 322

Need Legal Help?

Contact us

Working Hours

  • Monday – Friday 08:00 -1300 / 16:00 -19:00
  • Saturday               Closed
  • Sunday                   Closed