Tax Benefits

• The lowest tax system in the European Union at 10 % on taxable profits
• One of the most favorable Holding company jurisdiction(even a small holding of 1 % in foreign companies entitles the Cyprus Holding company to enjoy substantial tax benefits)
• Availability of Group losses relief without any time restrictions, under certain conditions
• No withholding tax on dividends paid to non-residents shareholders
• Exemption from taxation of capital gains apart from the disposal of immovable property situated in the Republic of Cyprus
• A sophisticated network of double tax treaties in operation
• Sales of shares and securities are tax free
• No taxation on dividend income
• VAT optional registration allowing them to claim back any VAT imposed on local expenditure and services offered
• Non resident companies are taxed only on the income derived in the Republic of Cyprus
• Salaries from services outside Cyprus for more than 90 days in a non-Cypriot resident employer or in the permanent establishment of a Cypriot resident employer are not taxed in Cyprus
• Low income tax rates for expatriates
• No inheritance tax

This post is also available in: Russian, Greek