Taxation

While Cyprus tax system has been reformed to comply with the EU Acquis Communautaire, the appropriate actions have taken place to maintain Cyprus’s competitiveness as an international business centre and enhance its attractiveness as a suitable jurisdiction for holding companies.

Double Taxation Agreements

Cyprus has developed a wide network of Double Tax agreements with 45 countries; ensuring that the same income is not taxed in more than one country. Specifically, Cyprus has entered into agreement with the following countries: Armenia, Austria, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, ...

Special Tax Treatment

Shipping Companies Cyprus is considered as one of the most competitive shipping centres in the world in terms of registration fees and taxes. No tax is imposed on profits from the operation of Cypriot registered vessels, or on dividends received from a ship-owning company. Income arising from ship management activities is subject to tax at 4,25%. Alternatively, a ship-management company may ...

Corporate tax

All companies are subject to a uniform tax rate of 10%, the lowest corporate tax rate in the European Union. Moreover, various tax exemptions apply for corporate tax such as: exemptions in respect of dividends received from other companies exemption in respect of interest income under special conditions favourable tax treatment of losses no tax on profits earned ...

Personal Income Tax

Based on Eurostat's latest statistics (May 2006), Cyprus does not only exhibit the lowest corporate tax rate, but also one of the lowest top statutory personal income tax rate at 30%. Moreover, various tax exemptions apply for personal income tax as well, such as: exemptions in respect of dividends subject to certain conditions no tax on interest income subject to certain conditions ...

Value Added Tax

Value Added Tax (VAT) rate is imposed on the supplies of goods and services, as well as on imports to Cyprus. The standard VAT rate of 15% applies to Cyprus; the lowest rate permitted in the EU. Cyprus also applies reduced VAT rates, on specific goods and services, of: 8% 5% 0%