General information:
After the accession to EU in 2004, Cyprus has rapidly developed into one of the most prominent financial centers in Europe. Cyprus has the lowest corporate income tax rate in the EU (10%) and double tax treaties in place with around 47 countries. Key taxation benefits:

  • No withholding tax over outbound dividends or interest.
  • Dividend income (subject to easily met conditions), profits from foreign PEs, profit from sale of shares and titles are exempt from tax.
  • There is no capital gains tax (with the exception of profits from sale of immovable properties situated in Cyprus).
  • There is normally no withholding tax over royalties either.
  • Shipping and ship management companies may chose to be taxed under tonnage tax system instead of being taxed for their business profits.
  • Unabsorbed losses can be carried forward indefinitely.

Cyprus is a politically and economically stable country where English, being one of the country’s official national languages, is widely spoken.

For detailed information on Cyprus taxation please refer to our detailed presentation on Cyprus taxation in the Resources & Events section or contact us at info@crestpro.co

Other features:

Currency: EURO
Language: Greek
Type of law: Common law
Type of Company: Limited Liability Company
Principal Corporate Legislation: The Companies Law, Cap. 113
The Income Tax laws of 2002
The Special Contribution for Defence of the Republic laws of 2002
Uses: Holding, servicing, financing, licensing and (other) trading, portfolio investment and investment fund activities, subject to possible restrictions as below.
Trading Restriction: Certain activities cannot be undertaken unless a license has been obtained. This includes banking, insurance and other financial services.
Company name: Previous approval required. Application rejected if the name is the same or very similar to existing company name.
Taxation: Cyprus companies are subject to income tax over its worldwide income from sources specified within the Income Tax laws of 2002.
Double Tax Treaty Network: Double tax treaties with around 47 countries.
Registered Office: Must maintain a registered office address in Cyprus.
Shareholders: Minimum one
Disclosure of Beneficial Owner: Not publicly available
Directors: Minimum one
Secretary: Local
Share capital: No minimum requirement
Annual Reporting: Compulsory filing of annual return, audited accounts and tax return for each year.
Shelf company: Available on request