What are the Corporation Tax and Capital gains Tax rates in Cyprus

One of the primary concerns for businesses and individuals looking to maximise their tax efficiency is the rate of corporation and capital gains tax charged in Cyprus. One of the most popular questions I get asked is “what is the corporation tax in Cyprus?”, so I have set out below some key facts for those looking to take advantage of the competitive tax region in Cyprus. If after reading the article you have any questions or would like a quote for setting up a tax efficient vehicle in Cyprus then just click the enquiry button on the right of this article.

Foreign investment companies, those companies focusing on IPOs and MBOs, other financial institutions and UK companies in general, will find the tax advantages of relocating to Cyprus weighted heavily in their favour. The fact that Cyprus is anxious to maintain its position as a favoured location for companies seeking to maintain a European HQ in the country is evidenced by its very favourable tax regime. All that is required is the company's branch office is managed and controlled in Cyprus, the procedure is quick and easy to do. This enables any UK business relocating to Cyprus to take advantage of the EU Directives and Regulations together with one of the lowest tax rates in the EU.

Primary benefits include one of the lowest corporation tax rates with the EU at 12.5 per cent; 25 per cent profits tax for trademarks or patents in a Cypriot Resident company receive income with the Cyprus Intellectual Property Regime -

AND zero per cent Tax (0%) on:

  • Capital Gains Tax arising from non-Cyprus sources
  • Dividends received from both local and overseas companies under certain conditions
  • Distribution of dividends to non-tax residents
  • Inheritance tax
  • International Trusts or their income in Cyprus
  • Shipping companies for operations in international waters

If you are thinking of relocating your company or business interests to Cyprus then click the Free Tax advice or Get a Quote buttons on the right and we will be happy to answer any questions.

About the author

Marinos D. Marinou Cyprus Tax Consultant

Marinos D. Marinou studied Accounting & Finance BA (Hons) at Liverpool John Moores University where he graduated in 2011 with a 1st class degree and an average mark of 81%. Subsequently he moved on to pursue the professional qualification of a Chartered Accountant (ACA) with BDO Cyprus where he gained valuable experience as part of the audit and tax team.

Since 2015 Marinos is specialising in International Tax Planning and in 2017 he has become a member of the International Tax Planning Association (ITPA) attending various conferences throughout the world. At the same time Marinos is attending lessons and undergoing exams for qualifying as a Certified Fraud Examiner (CFE) and has successfully passed CFE Level 1.

Marinos is currently the head of the International Department at D. Marinou & Co Ltd specialising in Corporate services, Company structures and tax planning. His core principle when advising clients is that the tax advice shall adjust on clients’ demands and not vice versa.

Recent articles