Taxation Benefits and Incentives in Cyprus: An Overview

Welcome to the world of tax advantages and incentives in Cyprus, where opportunities abound for businesses and individuals alike. Cyprus offers a range of enticing benefits that can significantly impact your financial standing and business growth. From a low corporate tax rate to favorable conditions for non-resident entities, the Cyprus tax landscape is designed to encourage economic activity, innovation, and investment. In this exploration, we will delve into the wealth of advantages Cyprus provides, including tax deductions, withholding tax exemptions, and specialized regimes such as the Intellectual Property Box. Discover how Cyprus is not only a hub for business but also a land of opportunity when it comes to taxation.

In Cyprus, taxation advantages and tax incentives

In Cyprus, an array of enticing taxation advantages and compelling tax incentives are at your disposal, designed to fuel your financial success. These encompass a wide range of benefits, such as:

1. Cyprus company low corporation tax of rate 12.50%; 
2. Non-resident entities are only taxed on their Cyprus-sourced income; 
3. No withholding tax on payments of dividends and interest to non-residents and Cyprus-domiciled individuals; 
4. Profits and dividends from abroad are tax-free subject to Controlled Foreign Corporation (CFC) rules stated above;
5. Restructuring legislation in line with the EU Merger Directive extending to companies in non-EU countries; 
6. Up to 80% deduction from income from qualifying intellectual properties (royalties etc.) For further information refer to our publications by following the link https://rightax.com.cy/cyprus-ip-box-regime-cyprus-intellectual-property-regime/ ;
7. Tax incentives on investors on the issue of new share capital to innovative companies; 
8. Notional interest tax deductions on new share capital issued. For further information refer to our publications by following the link https://rightax.com.cy/cyprus-companies-and-cyprus-notional-interest-deduction-nid/ ; 
9. A Cyprus holding company can pay no tax on its profits; and 
10. Tax incentives for employees coming to Cyprus from overseas. For further information refer to our publications by following the link https://rightax.com.cy/corporate-tax-in-cyprus-and-income-tax-for-tax-resident-individuals/ ;
11. Extensive network of double tax treaties. For further information refer to our publications by following the link https://rightax.com.cy/cyprus-double-tax-treaties/;

Conclusion

In summary, Cyprus provides a tax-friendly environment with benefits like a low corporate tax rate, non-resident tax advantages, and various deductions. Its extensive network of double tax treaties enhances its appeal, making it an attractive destination for businesses and individuals seeking tax incentives. Whether you’re a corporation or an individual, Cyprus offers numerous advantages to explore and utilize.