Initial Public Offerings Laws & Regulations 2023 (7th Edition)

1 Introduction

The continuous growth, modernisation and full compliance of the Cyprus Stock Exchange (the "CSE") with European legislation, and the strong performance of the Cyprus economy despite the overall adverse global economic climate, continues to attract the interest of local and international companies that are seeking to accelerate their growth and gain access to European capital markets.

Other than gaining access to capital, acquiring visibility and credibility, and providing liquidity for existing shareholders, Cyprus is a competitive market for initial public offerings ("IPOs") as it offers tax incentives since its tax regime is very favourable for companies, including a low corporate tax rate, exemptions on dividends, capital gains and interest. More specifically, the 17% special defence contribution tax on dividends is not imposed on non-resident shareholders of listed companies (i.e. legal or physical persons). In addition, the 20% capital gains