The general advantages offered by Cyprus are enhanced by the following tax incentives:
Low Corporation Tax. Net profits are taxed at the
rate of only 20 percent for chargeable income up to CYP40.000 and 25
percent for chargeable income in excess of CYP40.000. These tax rates
also apply to registered branches of foreign companies which have
been permitted to operate in the island.
Low Income Tax. Expatriates employed in the
Industrial Free Zone pay half the rates applicable to locals ie 0-20
percent.
No withholding Tax. Dividends paid by resident companies to foreign incorporated companies are exempt from withholding tax. If dividends are paid to shareholders (physical persons) then the tax withheld is credited against their own tax liability.
