Our Law Firm advises on a broad range of corporate tax issues and transactions, including mergers and acquisitions, asset finance, investment funds, securities, projects and other indirect taxes, securities trading and lending and tax structured finance. Taxation is international and so when required members of the team can draw on their own experience or will involve appropriate tax advisers in Cyprus and other jurisdictions.
What is special about Cyprus?
- Lowest corporate tax rate in the European Union at 12.5 per cent.
- Highest personal income tax rate bracket at 30%.
- Extensive double tax avoidance treaties network with over 40 countries enabling lower withholding tax rates on dividend or other income received from the subsidiaries abroad.
- No withholding tax on dividend income received from subsidiary companies abroad under certain conditions.
- No withholding tax on dividends received from EU subsidiaries.
- No withholding tax on capital gains and income on the disposal of neither the shares of the subsidiary’s share capital nor the shares of the Cyprus holding company.
- No tax on capital gains or income on the liquidation of the Cyprus holding company.
- No withholding tax on distribution of dividends from income, royalties or interest.
- Outward dividends by the Cyprus Holding Company to its non-resident shareholders are exempt from any withholding taxes.
- Profits earned from a permanent establishment abroad are fully exempt from Cypriot tax, subject to certain conditions.
- A diversified group of Cyprus companies belonging to a Cyprus holding company can set off losses with profits.
- Group relief for the utilisation of tax losses.
- No minimum holding period.