The Cypriot tax system – an overview
Cyprus offers one of the most attractive tax systems in the EU, making it an ideal destination for companies, entrepreneurs, and private individuals. The corporate tax rate is just 12.5%, which is among the lowest in Europe. For individuals, there is a highly beneficial "Non-Domiciled" (Non-Dom) regime. This means that foreign individuals relocating to Cyprus can be completely exempt from tax on dividends and interest income for an impressive 17 years.
For tech and IP-intensive companies, Cyprus provides an advanced IP Box regime, which can result in an effective tax rate of just 2.5% on qualifying intellectual property income. Furthermore, Cyprus is unique in Europe with its 60-day tax residency rule, meaning that under certain conditions, you only need to spend 60 days per year in the country to be considered a tax resident.
The personal income tax system is progressive, ranging from 0% up to 35%. There is generally no capital gains tax, except on real estate situated in Cyprus. Cyprus also boasts an extensive network of double tax treaties with over 65 countries, significantly reducing the risk of double taxation. Finally, there is no succession or inheritance tax, and Non-Doms are exempt from the Special Defence Contribution (SDC).
Our services for Cyprus
Tax optimisation
We assist you with the structuring of businesses and personal finances via Cyprus. Our experts provide advisory services regarding the Non-Dom regime, the setup of IP Box structures, and the establishment of holding companies to maximise your tax efficiency within the legal framework.
Compliance
Adhering to local laws and regulations is crucial. We manage ongoing Cyprus tax filings, corporate compliance, SDC reporting, and VAT registration so that you can focus on your core business operations.
Relocation
Are you planning to relocate from Sweden or another country to Cyprus? We support you through the entire relocation process, including the application of the 60-day rule, establishing tax residency in Cyprus, and strategies for severing substantial ties with your former home country.
Exit
If you are planning an exit, such as selling a company after relocating to Cyprus, we can assist with capital gains optimization. Through the correct Cypriot corporate structures, we ensure that the sale is executed in the most tax-efficient manner possible.
Tax advice
We offer qualified analysis of tax treaties to prevent double taxation. Our advisory also covers complex matters like pension taxation in Cyprus and other cross-border tax issues.
Why Cyprus?
Cyprus combines an extremely favourable tax climate with the benefits of being an EU member state. The combination of the Non-Dom regime, the unique 60-day rule, and a low corporate tax rate attracts investors globally. Additionally, English is widely spoken and serves as a primary business language, facilitating entrepreneurship. With a wonderful Mediterranean lifestyle, no inheritance tax, and a broad network of tax treaties, Cyprus is an unbeatable base for international entrepreneurs.