Cyprus Tax Planning Strategy

Cyprus offers several strategic advantages to international entrepreneurs. A central aspect of a successful Cyprus tax planning strategy is leveraging Cyprus tax laws. Healy Consultants' tax experts deliver a comprehensive Cyprus tax planning strategy to our clients. An effective Cyprus tax planning strategy should address some of the following issues:

Can the Cypriot company receive foreign-sourced income without being subject to local corporation tax? Central to Cyprus tax planning strategy is the rule that a properly-structured Cypriot company pays no tax on profits sourced outside Cyprus. Being the lowest rate in Europe, the corporate tax rate on income derived in Cyprus is 10% on assessable profits.

Are any tax exemptions or tax incentives available in Cyprus? A successful Cyprus tax planning strategy should identify both tax exemptions and restrictions. For example, dividend income is tax-free in Cyprus irrespective of source; profit from the disposal of securities is tax-free in Cyprus; profits of a permanent establishment maintained abroad by a Cyprus company are tax-free in Cyprus; there is no withholding tax on dividends paid to non-resident shareholders or on interest payments made abroad.

Does the company have to register for value added tax (VAT)? If annual turnover exceeds 9,000 Cypriot pounds (US$22,500), a Cypriot company is obliged to register for VAT. Healy Consultants' Singapore tax planning strategists will assist with registration if required.

To be able to draw up the optimum Cyprus tax planning strategy for our Clients, it is important Healy Consultants has a good understanding of your business and we know your objectives. In this respect, we encourage clients to discuss via phone the different Cyprus tax planning strategies available.

Related information

• Tax Planning in Singapore

• Company Formation in Cyprus