Cyprus Tax Planning
Cyprus as a Base for International Tax Planning
Our team of professionals can provide tax consultation on international tax issues and select the most effective vehicle(s) for our clients in order to achieve tax minimization. By identifying the relevant local law considerations we can assist in structuring cross border investments and acquisitions, establish holding corporate structures, repatriation and exit planning.
Cyprus is a long established reputable International Financial Centre. This establishment has been gained through its attractive taxation system and its admirable infrastructure facilities and professional services.
The tax system of Cyprus provides to the investors various benefits including (a) very low corporation tax at a standard rate of 10%, (b) exemption from tax on dividends received from overseas (conditions apply), (c) payments of dividends, interest and royalties to non residents are not subject to any withholding tax and (d) profits from dealing in securities and also capital gains from the sale of movable asset is tax free.
Investors and professional advisors often use Cyprus as an investment vehicle in order to maximise after tax return on worldwide investments. Such income, deriving from investment activities through Cyprus, shall avail from the provisions of Cyprus tax system and treaty network. Some of the most favourable investment activities which are ideally suited to Cyprus tax environment is the use of holding companies, royalty companies, finance companies and investment funds.