The tax benefits of investing in Cyprus
Cyprus is renowned for having one of the most favorable tax regimes in Europe, which offers extremely attractive tax benefits to both individuals and companies. It is advisable that you receive tax direction and advice from a prominent Cyprus based tax professional before embarking on any property acquisition.
Make Informed decisions with a prominent Cyprus Tax Consultant.
Marios is the Managing Director of M.Taliotis & Co Ltd, a prominent Chartered Certified Accountancy firm, based in Paphos, who holds the professional title of Fellow Chartered Certified Accountant (FCCA). He is also a member of the Institute of Certified Public Accountants of Cyprus (ICPAC). His extensive experience is primarily on audit tax consultancy, formation of companies and assurance for clients in a diverse range of industries and has an unchallenged knowledge of local Income Tax and VAT legislation.
Marios Philippou Taliotis
Chartered Certified Accountant
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Here is a brief summary of some of the key tax benefits available in Cyprus
FOR INDIVIDUALS
1. Personal income tax :
Cyprus operates a progressive tax system for individuals, with rates ranging from 0% to a maximum of 35%. However, there are several exemptions and deductions available that can significantly reduce the tax liability.
2. Non-domiciled individuals:
Cyprus offers an attractive non-domicile regime, allowing individuals to be tax residents of Cyprus but only pay tax on their Cyprus-sourced income. Non-Cyprus sourced income is generally exempt from tax.
3. Special defence contribution:
Interest, dividends, and rental income are subject to a Special Defence Contribution (SDC) tax. However, there are various exemptions and reduced rates available under certain circumstances.
4. Capital Gains Tax
Cyprus offers exemptions or reduced rates on capital gains tax, particularly on the sale of shares, securities, and real estate.
5. Double Taxation Treaties
Cyprus has an extensive network of double taxation treaties with many countries, providing individuals with the opportunity to benefit from reduced or eliminated tax on income earned abroad.
FOR COMPANIES
1. Corporate Income Tax
The corporate tax rate in Cyprus is 12.5%, which is one of the lowest in the European Union. This applies to both local and foreign-sourced income.
2. Tax Exemptions
Certain types of income, such as dividends, profits from the sale of securities, and income from permanent establishments abroad, may be exempt from corporate tax in Cyprus.
3. Group Relief
Cyprus allows for the consolidation of profits and losses within a group of companies, which can help offset profits with losses and reduce the overall tax liability of the group.
4. Intellectual property (IP) box regime:
Cyprus has introduced an IP Box regime, offering preferential tax treatment on income derived from qualifying intellectual property rights, with an effective tax rate as low as 2.5%.
5. Notional Interest Deduction (ND)
Companies can benefit from a notional interest deduction on new equity injected into the company, effectively reducing the taxable profit.
It's important to note that tax regulations can be complex, and it's advisable to consult with a tax professional or advisor to ensure compliance with the specific requirements and to take full advantage of the available tax benefits in Cyprus.
We welcome you & your family to explore the possibility that is.... Cyprus