Cyprus offers one of the lowest and stable corporate tax rate in the EU. A member of the European Union since 2004 and a member of the Eurozone since 2008. Cyprus’ regulatory regime is in full compliance with the requirements of the EU and OECD. Cyprus offers one of the most attractive tax regimes in Europe with one of the lowest EU corporate tax rates at 12.5%. The island’s advantageous tax rate coupled with an extensive list of double tax treaties places it high on the list of preferred jurisdictions for international tax planners.
All the above combined with the high-skilled professionals, business infrastructure and the geographical position, makes Cyprus an ideal business hub.
Basis of Taxation
All companies that are tax residents in Cyprus are taxed on their income accrued or derived from all sources in Cyprus and abroad. A non-Cyprus tax resident company is taxed on income accrued or derived from a business activity which is carried out through a permanent establishment in Cyprus and on certain income arising from sources in Cyprus. A company is resident in Cyprus if it is managed and controlled in Cyprus.