Cyprus company offers many tax related advantages such as the low corporate tax rate of 12,5%, 0% tax on the share of dividend income.
Other advantages include the low formation fees, the secure bank system and of course the free capital transfers.
- Low corporate tax rate 12,5% on profit
- Dividend participation exemption
- 5% dividend tax on Greek investors (DOSA DOC 1051902 EX 2016) if the dividends are declared in Greece and the 2 criteria of the Implementation of the Double Taxation Convention are met.
- No taxes are levied on the distribution of dividends, or payment of interest and patent rights (when used outside Cyprus) to non-tax residents of Cyprus
- There are no social security contributions for the shareholders
- Dividends are not taxed between Cypriot companies, with tax deductions and foreign investment dividends (on criteria that are easily met).
- They are taxed at 12,5% on interest arising from or closely related to the ordinary course of business (eg interest on commercial debtors or between group companies where the company acts as a financial institution of the group)
- Capital gains tax is imposed only on immovable property located in Cyprus or on shares of a private company owning real estate in Cyprus
- Gains from the sale of securities (including shares) are excluded from any tax
- Tax losses are transferred over the next 5 years
- Compensation for group damages is allowed
- Reorganizations of companies (eg mergers, divisions) are not taxed
- Taxes are excluded from profits from a permanent establishment outside Cyprus (with criteria that are easily met).
- Low formation and operation fees
- Secure bank system
- Free move of capital
- Fluent Use of English/Greek language
- Full member of European Union since 2004
- Member of United Nations
- Legal framework attuned to the European Acquis Communautaire
- Attuned legal legislation in accordance with OECD regulations & European Committee
- Secure legal and tax environment (based on the Anglo-Saxon law)
- Double tax treaties with more than 55 countries
- Modern infrastructure
- Stable and modern public administration
- Attractive and Friendly business environment for investors
- High level of education and professional expertise