Our team, together with its partners, provides you with advice on tax issues both domestically and internationally, as well as in the areas of real estate and intellectual property, the organization of companies and investment funds.
We provide you with advice regarding the current tax provisions. We can contribute to the better planning of your next project, shaping with you the whole range of tax charges that it includes, so that you have full knowledge of the amount of each tax (current and future) involved in your project, as well as the possibility of their future repayment.
Our consulting services cover the following areas: · Corporate Income Tax · Indirect Taxation · International Tax Planning · Value Added Tax (VAT).
Cyprus has one of the lowest 12.5% corporation tax rates in all of Europe. All Cyprus tax resident businesses must be managed and controlled in Cyprus in order to qualify for the Cyprus tax residency status. All Cyprus tax resident businesses must pay taxes on all income earned or generated from all chargeable sources, both domestically and abroad. There are a few highly advantageous corporate tax exemptions that are subject to requirements. These exemptions include those for dividend income, interest income (apart from interest from ordinary business), gains from foreign exchange transactions, the sale of securities, and gains from restructuring. Additionally, Cyprus has many double taxation agreements and a quite competitive VAT rate of 19%.
Individual inhabitants of Cyprus are subject to taxation based on the sources of their income, both domestic and foreign. An individual who is not a resident of Cyprus for tax purposes is solely taxed on income from domestic sources. If a person stays in Cyprus for more than 183 days each year, they may be considered a tax resident of Cyprus. However, the idea of non-domicile, effective as of January 1, 2017, allows individuals who meet specific requirements to maintain their tax residency in Cyprus without physically residing there for 183 days.
In connection to both personal and business schemes, your firm offers help on matters of tax legislation as well as global tax planning.
New domicile criteria as of 2015: The Cypriot tax code now recognizes the idea of “Domicile” as of July 2015. The non-domicile regulations were put in place to make the Cyprus Tax System more competitive and appealing to international investors who want to settle there and use Cyprus as a commercial hub.
Individuals must be Cyprus Tax Residents in order to take advantage of the non-Domicile Concept.
If a person is determined to be a non-domiciled person in Cyprus, they will be exempt from the SDC Act, which means they will not be required to pay tax on interest or dividend income, regardless of where the money was earned, where it was sent, or where it was used.
Tax residency in Cyprus
The House of Representatives passed a revised definition of a “Cyprus tax resident individual” in accordance with the Income Tax Law on July 14, 2017.
As of January 1, 2017, a person who doesn’t spend more than 183 days in any one State during a tax year, who isn’t a tax resident of another State during the same tax year, and who meets all three of the following criteria:
- spends at least 60 days in Cyprus during the tax year;
- at any moment during the tax year, engages in business, works, or serves as a director of a corporation tax resident in Cyprus.
- who keeps a permanent residence in Cyprus, which can be either an owned or rented home, is regarded as a tax resident of Cyprus.