Immigration: 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
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