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Cypriot tax - an overview


Many multinationals find Cyprus an attractive jurisdiction for holding, financing, trading and intellectual property structures. Taxand Cyprus summarises the main benefits, and the tax laws multinationals should be aware of when choosing to operate there.

Key benefits taxpayers can expect in Cyprus are:

  • Low corporate taxation at the rate of 12.5%
  • Extended and exceptionally beneficial network of double tax treaties
  • Full adoption and compliance with the EU Directives
  • Unilateral tax-relief for foreign tax suffered is granted irrespective of the absence of a double tax treaty
  • Group re-organisations can be implemented without any tax consequences
  • Tax relief for group losses and losses carried forward for the next five years
  • No withholding tax on dividends, interest and royalties paid to non-tax residents
  • Gains from trading and disposal of securities are tax exempt
  • No capital gains tax from the sale of property situated outside of Cyprus
  • Dividend income is tax exempt upon easily met conditions
  • Attractive permanent establishment rules
  • Low personal tax rates and introduction of significant incentives for first time employment in Cyprus for highly paid non-resident individuals

Discover more: Cyprus tax card 2015

Your Taxand contacts for further queries is:
Chris Damianou
T. +357 22 699 222

Quality tax advice, globally

Taxand's Take

Multinationals looking to expand into Cyprus should consider the tax implications, as covered in this guide, to ensure they are aware of all the benefits as well as the obligations they will have to meet. 

Taxand's Take Author

Chris Damianou

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