Our Law Firm has an extensive record for high quality, tax advice and tax planning, as well as experience in negotiating and handling tax disputes
- Our clientele is of a wide range of business activities including of corporate, companies, legal entities, property, shipping, banks, airlines, trading, services and industrial sectors.
- We offer assistance in all aspects of their worldwide business development, from establishing their own representative office to any kind of agreements, joint ventures, mergers acquisitions or redomiciliation.
- We covered activities from the USA to the Far East, with attention on expansion in the countries of Central and Eastern Europe and CIS.
- Through our close co-operation with International Fiscal Services (IFS), specialists in international fiscal law, we offer services to our clients for structuring their international, cross-border activities and comprehensive tax planning in the most favourable manner.
Taxation - Standard rate at 12,5%
Corporate income tax (CIT):
Corporates in Cyprus are taxed on their income accrued or derived from all sources in Cyprus and abroad.
A non-Cyprus tax resident company is taxed on income accrued or derived from business activity that is carried out through a PE in Cyprus and on certain other income arising from sources in Cyprus.
The standard CIT rate in Cyprus is 12.5%.
For ship-owning companies the profits derived by the owner of a ship registered in the European Union or European Economic Area(EEA) (as well as other foreign jurisdictions, subject to conditions) from its operation/charter out are fully exempt from all direct taxes. The term “owner” includes a bareboat charterer of a non-Cyprus flag vessel parallel registered in Cyprus. A similar exemption applies to charterers and ship managers.
The income of the first €19,500 is tax free. Interest and dividends are liable to “defence contributions” but no income tax.
No capital gains tax on the sale of shares. In property only real estate Cyprus is taxed.
No inheritance tax.
Double Taxation Agreements
Cyprus has a network of double taxation treaties aiming to protect against the risk of a corporate entity or an individual being taxed twice where the same income is taxable in two states and further prevent tax discrimination against Cyprus-based-registered business interests abroad. They are important tools for tax planning and constitute a substantive advantage for Cyprus.
Cyprus has concluded double tax treaties with over 50 countries, whilst a further 40 are currently being negotiated. Most of these tax treaties, follow the OECD Model Convention, although the US-Cyprus tax treaty the most recent Model of United States Agreements.