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12.5% Corporate Income Tax
Cyprus has a 12.5% corporate tax rate, one of the lowest in the EU. Dividends, certain capital gains, and profits from securities sales can be fully tax-exempt. The country operates a territorial taxation system for non-domiciled individuals and maintains double tax treaties with over 60 countries, making it ideal for holding company structures.
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Gateway to Europe
Cyprus is a popular destination for entering the European business market. Starting and operating businesses is very simple. If you are looking to engage in financial services, Cyprus is a trustworthy destination that provides security for investors and their rights. This means you can choose Cyprus as your European headquarters without needing additional permits from other EU member states or establishing branches or offices.
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Investment Opportunities
There are numerous investment opportunities in Cyprus. It is one of the most tourism-friendly countries in the Mediterranean and across Europe; it is a major maritime nation in the world; its real estate sector is thriving, and there is significant room for growth in financial services.
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Business-Friendly Nation
The Cyprus government has implemented several business initiatives. For example, it has introduced many tax incentives, opened the country to investors, and provided tax reductions for fund managers. It has also established citizenship and investment residency programs, reformed banking laws to enable loan securitization, and significantly reduced non-performing loans.
Tax Info
Enter Dynamic Page- General CIT Rate
- 12.5
- CIT Return Due Date
- Tax due on March 31 of the second year after the calendar year.
- CIT Payment Due Date
- The relevant tax is due on August 1 of the year following the calendar year.
- CIT Estimated Payment Due Date
- Payment in installments of equal amounts on July 31 and December 31 of the relevant tax/calendar year.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 0/17/0
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 0/0/10
- General VAT Rate
- 19
- General Capital Gain Tax Rate
- 20
- Composite Effective Average Tax Rate
- 11.4%
- Composite Effective Marginal Tax Rate
- 5.92%
Administrative Regions
- 01 - Nicosia District
- 02 - Limassol District
- 03 - Larnaca District
- 04 - Famagusta District
- 05 - Paphos District
- 06 - Kyrenia District
Belonging Jurisdiction
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CY - Cyprus
Republic of CyprusLearn MoreRepublic of Cyprus -
EEA - European Economic Area
European Economic AreaLearn MoreEuropean Economic Area -
EU - European Union
European UnionLearn MoreEuropean Union -
WORLD - Global
EarthLearn MoreEarth
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