Maximize Your Business & Personal Tax Benefits in Cyprus
Looking to expand your business internationally while enjoying personal tax advantages? Cyprus offers an unparalleled environment for businesses and individuals alike, combining competitive corporate tax rates with substantial personal income tax exemptions. Discover how establishing a company in Cyprus can benefit both your business growth and personal tax strategy.
Why Choose Cyprus for Business and Beyond?
- Competitive Corporate Tax Rate: Cyprus boasts a 12.5% corporate tax rate on business profits, one of the lowest rates in the European Union, allowing businesses to reinvest more into growth.
- Generous Tax Exemptions for Companies:
- Foreign Dividend Income is exempt from tax under easily met conditions.
- Profits from Foreign Permanent Establishments (PEs) and transactions in shares, bonds, and other financial instruments are tax-exempt.
- Intellectual Property Income (IP Nexus): Cyprus offers an effective tax rate of just 2.5% on IP-related profits, making it ideal for IP-holding companies.
- Notional Interest Deduction (NID): Companies in Cyprus can significantly reduce their taxable base with the NID, which allows a notional interest deduction on new equity. This deduction, based on Cyprus government bond yields plus 5%, can lower the effective corporate tax rate even further, offering substantial savings.
- No Withholding Tax on Repatriation of dividends worldwide, supporting smooth cross-border operations.
- Double Tax Treaty Network: Extensive agreements reduce or eliminate tax liabilities on cross-border income, enhancing your business’s efficiency and reach.
- Personal Income Tax Exemptions for Non-Domiciled Residents: Cyprus’ “non-domicile” regime offers personal income tax exemptions for qualified individuals, enabling them to enjoy:
- No Tax on Dividend, Interest, and Rental Income for up to 17 years if they qualify as non-domiciled residents. Interest and Rental income only taxable under Income Tax (exempt from Special Defence Contribution).
- Residency Flexibility: With the “60-day rule,” individuals can establish tax residency in Cyprus by spending just 60 days a year in the country, provided certain conditions are met. This allows entrepreneurs and investors the flexibility to maintain their business presence internationally while benefiting from Cyprus’ favorable tax environment.
- Favorable Conditions for High Earners: Personal income tax incentives are available, further enhancing Cyprus’ appeal for foreign business owners and executives seeking tax-efficient residency options.
- Strategic Location with a Pro-Business Environment: As a central EU location, Cyprus provides seamless access to European markets and beyond, underpinned by modern infrastructure, a skilled multilingual workforce, and a business-friendly regulatory framework.
How We Can Support You
Our expert team is here to make establishing a Cyprus company as seamless as possible. We provide:
- Tailored Tax Structuring Solutions that maximize both corporate and personal tax efficiency.
- Comprehensive Compliance and Operational Support to ensure smooth, compliant daily management of your company.
- Residency and Legal Advisory Services to guide you through Cyprus’ residency rules, ensuring you take full advantage of the non-domicile and 60-day residency benefits.
Take advantage of one of the world’s most advantageous business environments today. Contact us to learn how a Cyprus company can elevate your business and optimize your personal tax position.
Contact Us:
73 Metochiou Street, Engomi, 2407 Nicosia
+357 22 361 300 | enquiries@consulco.com