A Competitive and Internationally Recognised Tax Framework
Cyprus offers one of Europe’s most competitive and internationally recognised tax systems, combining attractive tax incentives with full compliance with European Union legislation, OECD standards and international transparency requirements.
Its stable legal framework, extensive network of double taxation agreements and strategic location continue to make Cyprus an attractive jurisdiction for international businesses and investors.
Benefits for Companies
Subject to the applicable legislation and qualifying conditions, Cyprus companies may benefit from:
- Competitive corporate tax framework.
- Participation exemption for qualifying dividend income.
- Exemption on qualifying gains from the disposal of securities.
- Extensive network of double taxation agreements.
- No Cyprus withholding tax on dividends paid to non-residents, subject to the applicable legislation.
- Exemption for qualifying foreign permanent establishment profits.
- Availability of Notional Interest Deduction (NID), where applicable.
- Intellectual Property (IP) Box regime for qualifying intellectual property.
- Tax-efficient corporate reorganisations and re-domiciliations.
- European Union and Eurozone membership.
Cyprus also provides an internationally recognised legal and regulatory framework, supported by a highly developed professional services sector.
Benefits for Individuals
Cyprus offers attractive tax incentives for qualifying individuals, including internationally mobile professionals and high-net-worth individuals.
Depending on individual circumstances and the applicable legislation, these may include:
- The Cyprus Non-Domicile regime.
- Tax residency under either the 183-day rule or the 60-day rule.
- Personal income tax incentives for qualifying employees.
- No Cyprus taxation on certain qualifying investment income.
- Competitive treatment of foreign pension income.
- General Health System (GHS/GeSY) contributions in accordance with the applicable legislation.
International Tax Environment
Cyprus continues to align its tax legislation with international best practice.
Businesses and investors should also consider:
- Economic substance requirements.
- Transfer Pricing legislation.
- Ultimate Beneficial Owner (UBO) reporting obligations.
- OECD anti-abuse measures.
- International tax transparency rules.
- Pillar Two developments for large multinational groups, where applicable.
A properly structured business with genuine commercial activities can continue to benefit from Cyprus’ competitive and internationally recognised tax framework.
How UHY Can Help
Our experienced tax professionals can assist with:
- International tax planning.
- Corporate tax advisory.
- Personal tax planning.
- Tax residency advice.
- Holding company structures.
- Transfer Pricing.
- Tax compliance and reporting.
- Accounting, audit and corporate services.
For more information on how we may assist you, please contact us at uhy@uhy.com.cy or call +357 22379210.
The contents of this publication are provided for general information purposes only and should not be regarded as legal, tax or professional advice. Specific advice should always be obtained based on your particular circumstances before taking any action.