Cyprus has the most favorable tax system for corporate and individuals in EU
Cyprus has the lowest rates in the EU, at 12.5% corporate tax, together with Ireland (12.5%) and excluding the Isle of Man, Jersey and Guernsey, which although have a nil rate for non-financial services firms (and 10% for financial services firms) are not in the EU.
- Tax on Dividends: 0%
- Capital Gains Tax: 0%
- Income Tax: First €19, 500 of income is tax free
It is important to highlight that Cyprus is not an offshore tax haven. The Cypriot tax regime and tax legislation is in full conformity with both European Union Laws and Directives and with the Organisation for Economic Cooperation and Development (OECD).
Testament to this is also the extensive network of Cyprus double taxation treaties, working closely with other nations to benefit their private sector, encourage investment, growth and progress, whilst ultimately also benefiting the company's home country.
In fact, Cyprus has not only fully adopted all EU Directives, it has even gone further by not imposing minimum holding period, percentage holding and any other restrictions used by most Member States.
Indeed, tax planning advantages in Cyprus reach far beyond saving tax (money). It is a complete business strategy for investment (especially to Europe, Middle East and Africa), as well as a global solution for financial efficiency. These benefits are for large corporate companies, small and medium size enterprises, as well as individuals.