Cyprus Company Tax Benefits
Cyprus Company Tax Benefits
As soon as your Cyprus Company Registration is complete you can begin your trading operations and enjoy the many Cyprus Company Tax Benefits, a Cyprus company has to offer to you. Registering a Cyprus company can possibly prove to be your best move as an international businessman. Not many if any, other companies in other jurisdictions, can grant you the multitude of Cyprus Company Tax Benefits enjoyed by all who take the leap to register a company in Cyprus. Of course you will also have a lot of Administration Benefits from your company which will assist you to save costs and improve your business results.
Under the recently enacted Cyprus Tax Legislation which actively promotes the acquis communautaire of the EU the following are some of the major Cyprus Company Tax Benefits which you can enjoy by operating your Cyprus company:
1. Cyprus Company Tax Benefits: Corporate Tax Rate of a Cyprus Company
The corporate tax for a Cyprus company is only 12.5%! This is one of the lowest corporate taxes in the EU and possibly one of the best worldwide. This tax is paid on the net profits of your company from revenue of your trading activities outside of Cyprus of course. If you trade in Cyprus also you are antagonizing the local trade, so you will pay 30% taxes. When we say that the tax is on the net profits we mean of course that all expenses necessary to generate the revenue are deductible. There are many exceptions to this rule as you will see below.
2. Cyprus Company Tax Benefits: Dividend Tax Withholding in Cyprus is 0%
Another very important tax benefit you will enjoy on the registration of a Cyprus company is that you will pay 0% Taxes on the dividends paid out to you by your company. What does this mean for you as a businessman. After the Audited Accounts IR4, are filed to the Tax Office and the taxes are paid, the net profits are left in the company bank account. These profits are called dividends. The way to take your dividends is to ask us to prepare a Special Resolution by which interim dividends can be paid to you. The money is paid into your personal bank account. If this money is spent in investments or other commodities in Cyprus or in any other country no other tax will be paid on it.
If you want to repatriate some of your profits back to your country of residence then you must consult with a tax adviser there. Cyprus has more than 65 Double Taxation Treaties with as many countries. Likelihood is that there will be one with your country. This will save you a lot of taxes in your own country too. For proper operations of your company our Firm will of course open a Bank Account for you either in Cyprus or in any other country.
3. Cyprus Company Tax Benefits: Dividend Tax on Dividends From Shares Held By A Cyprus Company in Other Companies is 0%!
A third great tax advantage for a Cyprus company is that after the registration of a Cyprus company, it can of course buy and hold shares in any other company in any part of the world. There are no restrictions. If those shares are 1% or more of the capital of that company, then any dividends paid to the Cyprus company are taxed at 0% Tax and they are also exempt from the 17% Defense Contribution!
4. No Tax On Profits From Trading in Securities.
Another great tax benefit you get from your Cyprus company registration is that all your profits from trading in securities such as shares, bonds, debentures, forex, bitcoin, stocks etc are taxed at 0% Tax in Cyprus for all foreign owners of a Cyprus company. That includes share sales of your own Cyprus company!
5. Zero Capital Gains Tax on Cyprus Company Registration.
As soon as your Cyprus company registration is complete you can begin your international real estate projects knowing that all your profits will be taxed at 0% Capital Gains Tax in Cyprus. Any profits from a sale of real estate in Cyprus will taxed normally as it antagonizes local trade. Capital gains tax in Cyprus is 20%, but if you do this for a trade i.e for more than once or twice, then you will be paying income tax of 30% as it will be considered as trading in real estate.
6. Only 2.5% Tax on Revenue From Intellectual Property.
A Cyprus company pays only 2.5% tax on all rights coming from possession and licensing or selling of Intellectual Property rights, such as patents, inventions, trade names, trademarks, music or sports or cinema, or scientific rights etc. Due to very recent legislation this exemption must be claimed on proof of ownership of the IP rights.
7. Profits of Permanent Establishments Abroad Exempted from Tax!
All profits of a Cyprus company from permanent establishments abroad come to your Cyprus company at zero tax! A permanent establishment is a hotel, or a restaurant or chain of hotels or restaurants, a factory, a chain of shops etc.
8. A Network of Over 65 Double Taxation Treaties.
As soon as a Cyprus company is registered you have a battalion of over 65 DTT all over the world to exploit to reduce your taxes even more. For more info on this please apply to our office.
These are the major tax exemptions you will benefit from registering a Cyprus company. There are more, less important ones but we do not think we should burden you with too much information. If however you need to know more, please apply to our office and we will be more than happy to advise you accordingly. The Tax exemptions above are very strong tools in your arsenal to enable you to program your operations in such a way as to reduce your tax payments to a great extent. NO OTHER company offers so many and so expansive tax benefits. So before taking any advice referring you to small islands or tax havens here and there you would be wise to get in touch with us.
For ZERO TAXES in Cyprus for your investment activities you set up a Cyprus International Trust! Follow the link to find our for yourself the most unique way to zero taxes.