Tax residents of Cyprus are liable to pay the Special Contribution for Defence, non-tax residents are exempt. Foreign taxes paid can also be credited against the defence tax liability.

It is charged at the rates shown in the table below:

A Rough Guide to Corporation Tax in Cyprus The rate of Corporation Tax in Cyprus is 10%.  Companies pay Corporation Tax, Sole traders and partnerships do not pay Corporation Tax in Cyprus. All companies that are tax-resident in Cyprus are taxed on income whether it comes from Cyprus or anywhere else in the World.  Companies [...]

Cyprus differs from “tax havens” as it has an extensive network of Double Taxation Treaties with countries all over the World. •Double taxation is avoided if a resident in one of the treaty states obtains income from the other treaty state. A double tax treaty provides reduced or even nil rates of withholding taxes on [...]

A trust is established by an individual “the settlor” and is a means whereby property “the Trust Property” is held by one or more persons “the Trustees” for the benefit of another or others “the Beneficiaries” or for specified purposes. Trusts have traditionally been very important tax planning devices. Even today a very high proportion [...]

An IBC/off-shore company is a company that is set up in another country (jurisdiction) outside of where it carries on its main activities or operations, and it can have its bank accounts in another country outside of where it is set up.  Set up is simple, straightforward and can be inexpensive. Example: Jurisdiction                   Belize Operations [...]

An offshore company is a perfect way of reducing taxes. 1:- In the following case study a UK based company ‘UK Importer Co’ (an electrical goods imported and re-seller) is buying 1,000 TVs at £100 each, directly from China and selling to consumers in the UK at £200 each, thus making a profit of £100,000.  [...]

•A Cyprus Holding company is a legal entity that can be used by investors to own properties or make investments; anywhere. •The functions of Holding companies cab be: Receiving dividends, interest or royaltie– Making investments in other companies (holding shares in subsidiary or associated undertakings)– To finance investment undertakings by supplying the companies that they [...]

•An IBC (international Business company) is a legal entity owned by foreigners, registered in Cyprus but having operations and deriving it’s income outside Cyprus. •An IBC can have a Cyprus office in order to manage operations. •If the Shareholder is an EU resident then the IBC can conduct operations in Cyprus. •The Beneficial Owner remains [...]

Share capital requirements:  There is no minimum set by the Law.  The usual value of each share is € 1.00. When the Company has a physical presence in Cyprus with its own offices and staff the paid up capital must reflect the nature of the activity in Cyprus, which usually increases the authorized and issued [...]

Trading conditions are hard and looming increases in business and personal taxes will make conditions even harder.  Business is rushing to move profits offshore and reduce taxes; legally and properly; and there’s not much the Revenue can do about it! UK companies are looking for legitimate solutions that enable them to remain profitable by reducing [...]