Tax Incentives In Cyprus

Advantages of Cypriot Companies

1. Corporation Tax on net profits is only 12,5%.
2. Dividend income is tax exempt.
3. Profits realised on disposal of securities/shares in subsidiaries, bonds, derivatives, stocks etc., are not subject to taxation in Cyprus. This applies to all gains including capital gains and gains from trading in securities.
4. A Notional Interest Deduction (NID) is allowed on paid, newly introduced capital.
5. Being part of the European Union (EU) jurisdiction.
6. Having a wide network of double tax treaties providing zero or low withholding tax rates on interest, dividends and royalties.
7. No withholding tax on dividend, interest and royalties paid to non-resident individuals, and corporations.*