Work & Life
in Cyprus

 

Cyprus Tax.

Cyprus Tax.

A Limited Company pays a Corporate Tax in Cyprus, i.e., corporate income tax of 12.5% of its profit. There is no other Cyprus tax on a Limited Company's profit. Notional Interest Deduction Since May 2015, an additional exemption applies: a tax credit for virtual interest on the company’s ... read more

Shareholder Agreement – What is it?

Shareholder Agreement – What is it?

Last updated: October 14, 2016 at 7:04 am As the name implies, the shareholder agreement is an agreement between the shareholders of the Limited Company. It provides certainty as to the rules, and regulates the relations between the shareholders. You should never, in any circumstances use read more

Emigrating to paradise.

Emigrating to paradise.

In the summer of 2015 the Cypriot Parliament passed a law which makes Cyprus much more attractive as a country of immigration for wealthy foreigners. The Act introduces, alongside the concept of “Residence”, the concept of “Domicile”. This distinction is not known in German, Austrian or ... read more

Cyprus: Adapting to a Changing Business Environment.

Cyprus: Adapting to a Changing Business Environment.

The recent changes in the regulatory requirements and international tax reforms and initiatives such as the Base Erosion and Profit Shifting (BEPS) have had a major effect on international financial centers. The changes are a result of discussions held by organizations such as the Organization ... read more

Cyprus Private Partnership.

One or more silent partners (as limited partners) establish a private partnership, together with a managing partner as a general partner. The silent partners have no part in the management and apart from their deposit they carry no risk. The managing partner bears the risk and conducts the ... read more

Is Absolute Tax Certainty Ever Attainable?

Is Absolute Tax Certainty Ever Attainable?

Tax certainty is the basis of a stable tax system serving both taxpayers and governments. But is there anything simple about tax? Can the tax system ever be uncomplicated? Tax is a complicated subject and for every tax rule established, a way around would always be found. So, no, tax will ... read more

Cyprus Tax Residency.

Typically your tax residency is where you stay more than 183 days per year. This is also true in Cyprus. But now the government introduced a new rule: The 60 Day Rule. It is meant for the people who want to establish a Cyprus tax residency but have problems showing that they stay more than 183 ... read more

Description of the Cyprus KYC Rules.

Description of the Cyprus KYC Rules.

What is the KYC procedure in Cyprus? Cyprus has been quick to adopt the Fourth Anti-Money Laundering (AML) Directive as a legislative proposal. In a bid to comply with the new reform, the following are the obligatory requirements in Cyprus: Individual Beneficial Owner: Passport copy ... read more

Cyprus Focuses on Substance

Cyprus Focuses on Substance

Recent developments highlight the importance of substance for companies in Cyprus who wish to operate and benefit from the advantageous Cypriot tax rates. A lack of substance can mean that the benefits of having a presence in Cyprus disappear - and also that the company no longer has a bank ... read more

Tax Payback on Company Capital

Tax Payback on Company Capital

As we did write in our post regarding Cyprus tax, corporate entities, under certain circumstances, can deduct a hypothetical interest on the paid-up capital of the company. This deduction lowers the taxable profit of the company. The interest is calculated either on the yield of the 10-year read more

Cyprus IP Box – How does it work?

Cyprus IP Box – How does it work?

Cyprus has developed a favorable regulation on the taxation of intellectual property (IP), which is now fully in line with international developments in relation to the proper treatment of license revenues and the OECD guideline. Up to 80% of the license income is tax-free. With a ... read more


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