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ARTICLE · 29 JULY 2015

Significant Changes To Tax Legislation In Cyprus

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This amendment aims to encourage the introduction of new equity (shares and share premium) into a Cyprus company by attaching an annual allowable tax deduction to the new equity.

CyprusTax
Bram Breukink
Bram Breukink
Nick Terry
Nick Terry
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The Cyprus government has recently passed a number of amendments to its tax laws, which considerably enhance the competitiveness of the Cyprus tax system. The changes are some of the most significant since the introduction of the Cyprus tax regime in 2003.

The amendments promote direct foreign investment by increasing the attractiveness of equity as an alternative to debt financing for companies.

In addition, the changes aim to encourage high-earners and high-net-worth individuals to relocate to Cyprus by introducing the non-domiciled resident status into the Cyprus tax legislation.

Below is an overview of the most relevant amendments.

Corporate income tax law- allowable tax deduction on corporate equity

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