Cyprus is a member state of the European Union since 2004 and has a strong legal and tax system, as well as extensive experience as an international business centre, with highly qualified professionals and sophisticated infrastructure. It is a country with a strategic location, long history and culture, as well as nice with almost year-round sunshine.
Cyprus offers one of the most attractive Tax Regimes in Europe. Cyprus has one of the lowest EU corporate Tax Rates at 12,5%. The island’s advantageous tax rate coupled with an extensive list of double tax treaties places it high on the list of preferred jurisdiction for international tax planners. Cyprus offers a number of personal and corporate tax incentives that aim to attract multinational companies to relocate key personnel to perform their duties from Cyprus. The tax incentives also appeal to high-net-worth individuals who are willing to relocate to Cyprus.
Access to Markets
Attractive and Transparent Tax regime
Corporation Tax Rate: 12,5%.
Basis of Taxation
All companies that are tax residents of Cyprus are taxed on their income accrued or delivered from all sources in Cyprus and abroad. A non-Cyprus tax residence company is taxed on income accrued or delivered from a business activity which is carried out through a permanent establishment in Cyprus and on certain income arising from sources in Cyprus. A company is resident of Cyprus if it is managed and controlled in Cyprus.
The tax year is the calendar year. The accounts of a company may be closed on a date different from 31st of December, in which case taxable profits are apportioned on a time basis relevant to tax years.