Cyprus tax resident benefits for business and investment

• Corporate tax in Cyprus

The corporate tax rate is fixed – 12.5% and is included in the rating “The lowest corporate tax rates in the EU”.

• Special tax regime IP BOX

IP-Box (Intellectual Property Box) regime for an intellectual property company, according to which the corporate tax rate can be as low as 2.5%.

• Dividends, interest

0% on income from dividends, interest and other passive income, regardless of whether the income is received in Cyprus or worldwide

• Employer and employee contributions

Employer and employee wage contributions are among the lowest in the EU. Only 14.9% – from the employer, and 10.95% – from the employee.

• Capital gains tax

Applies only to income relating to immovable property located in Cyprus. A rate of 20% is charged on income from the sale of immovable property located in Cyprus or from the sale of shares in companies owning immovable property located in Cyprus.

• Tax incentives for investments

There are a number of tax incentives to attract investment in certain sectors such as tourism, energy and real estate. This includes exemption from income tax, reduced income tax rates and other bonuses for investors.

• Double tax treaties

Cyprus has an extensive network of double tax treaties with over 60 countries around the world. This means that businesses registered in Cyprus can avoid double taxation and benefit from more favorable tax rates.