Corporate: Relocation

Cyprus tax legislation & advantages 

  • ‘Largely Compliant’ upgraded OECD Global Forum rating EU & OECD, CRS, EOI, BEPS, FATCA Compliant / Access to EU directives
  • One of the lowest corporate income tax rates in the EU at 12, 5%
  • Dividend participation exemption
  • Exemption from tax on profits from disposal of securities (shares, bonds, debentures)
  • No withholding taxes.
  • No succession taxes.
  • Low taxation of capital gains (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus)
  • No Thin Capitalization rules
  • No Controlled Foreign Company (CFC) rules
  • Notional Interest Deduction (NID) on investment in Cypriot companies
  • Tax favorable IP Box regime 
  • Tax favorable regime for for individuals with employment exceeding Euro 100.000 per annum: 50% tax exemption from personal income which applies for the first 10 years of employment in Cyprus and applies to persons who were not tax resident of Cyprus for any 3 out of the last 5 tax years prior to the commencement of employment in Cyprus (including the previous tax year).
  • Tax favorable regime for individuals with employment in Cyprus below Euro 100.000 per annum relocated to Cyprus to support the operations of the company, there is an exemption of 20% of the employment income in Cyprus of a person (who was not tax resident of Cyprus during the previous tax year), up to a maximum of €8.550 per annum, which applies for the first 10 years of employment in Cyprus. This exemption regime applies until the year 2020.
  • Start-up legislation (Pending Parliament approval) Cyprus provides tax incentives for investing in innovative Start-ups and SMEs. The qualifying investors are the following:
      • Existing innovative Enterprises: R&D costs represent at least 10% of its total operating costs in at least one of the three previous years
      • New innovative Enterprises (Start-ups): Assessment based on business plan

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+357 22675231

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indianos@indianos.com.cy

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Diagorou 4, Kermia Building, Office 204, 1097 Nicosia, Cyprus

Working hours:

Mon - Fri: 9 am - 6 pm