Taxes and tax optimization

Our experienced lawyers and tax experts specialize in developing personalized tax optimization strategies for both individuals and legal entities.

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    George Georghiou
    Managing Director
    United Kingdom

    Taxes and tax optimization

    The tax system of Cyprus is one of the main advantages of this country, as it allows you to legally optimize taxation, both for individuals and for companies.

    сorporate tax rate

    Cyprus is no longer regarded as an offshore jurisdiction, but is recognized as a low-tax country that meets all the requirements of the European Union and the Organization for Economic Co-operation and Development (OECD), which ensures the legality and reliability of its tax system.

    Thanks to its progressive taxation system, Cyprus creates a favorable environment for investment, business and international transactions.

    ✅  We are happy to advise you on the tax implications and tax optimization options associated with moving to Cyprus, Investments to Cyprus or starting a business on the island.

    Taxes in Cyprus - FAQ

    Who is tax resident in Cyprus?

    In order to take full advantage of the low tax jurisdiction of Cyprus and optimize their taxation, an individual has two options.
    • The first option, known as the 183 Days Rule, requires a stay in Cyprus of at least 183 days in a tax year in order to qualify as a Cyprus tax resident.
    • The second option is the “60 Day Rule”, which provides an opportunity for an individual to become a tax resident of Cyprus after spending only 60 days in Cyprus and fulfilling other conditions

    How to become a tax resident of Cyprus in 60 days?

    An individual has the opportunity to become a tax resident of Cyprus under the “Rule of 60 days” if the following conditions are met in the relevant tax year:
    • Stays in Cyprus for at least 60 days
    • The applicant must be doing business in Cyprus or be employed in Cyprus or be a director in a company registered in Cyprus (with mandatory salary) at any time during the tax year.
    • Availability of a company account and a personal account of the beneficiary
    • The applicant is permanently resident in Cyprus (either owned or rented).


    What are the rates of income tax (personal income tax) in Cyprus?

    Personal income tax (Cyprus income tax) operates on a progressive scale from 0% to 35%. The first €19,500 is tax-free.
    Income tax rates in Cyprus:
    up to 19 500 € – 0%
    19 501 to 28 000 € – 20%
    28,001 to 36,300 € – 25%
    36 301 to 60 000 € – 30%
    60 001 € and more – 35%

    What are the benefits of the IP-Box regime in Cyprus?

    The IP-Box (Intellectual Property Box) regime in Cyprus is a tax relief intended for companies in the field of intellectual property.
    Benefits include a low tax rate on intellectual property income.
    Under the IP-Box regime in Cyprus, a special income tax rate is provided.
    80% of profits subject to the regime are exempt from tax and the rate is only 2.5%, which is well below the normal income tax rate of 12.5%.

    What are the benefits of the Cyprus tax system?

    Low tax rates, special conditions for the taxation of income from intellectual property and numerous tax agreements with other countries make Cyprus one of the most attractive places for tax optimization.

    Contact us

    For enquiries please fill in the form below. Our consultants will contact you with the details.

    Cyprus, Larnaca

    Griva Digeni 49, Chrystalla Court 1st Floor Office 11, 6036 Larnaca, Cyprus

    +357 96 345 275

    Ukraine, Kyiv

    11B Lyuteranska St., off. 23, 01024

    +38 044 383 90 30

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