- Low corporation tax rate currently at 12.5%
- Broad tax exemption system for dividends from overseas subsidiaries
- Extensive Double Tax Treaties network with more than 60 countries
- Exemption from withholding tax on the distribution of income for dividends, interest and royalties for foreign shareholders
- General tax exemption for profits from the sale of securities
It is important to point out that if the management and control of Cyprus International Business Companies is exercised from Cyprus, the companies will be considered as tax residents of Cyprus and will be eligible to utilize the tax incentives of the Cyprus taxation system and the concessions of the numerous Double Tax Treaties that Cyprus has signed.
Appointing the majority of the Directors who are Cyprus residents, can fulfill this requirement.
An individual is considered to be a tax resident in Cyprus if they live in Cyprus for a cumulative period exceeding a total of 183 days per fiscal year.