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:

Only businesses that are registered for VAT can charge VAT, when registered VAT is added on all taxable sales (output tax) supplied in Cyprus and to non-VAT registered parties within the EU. VAT applied to sales invoices is referred to as “output tax”. VAT applied to purchase invoices is referred to as “input tax”. VAT [...]

Self-employed persons and employed persons pay different rates of Social Insurance as outlined below: Self-employed: The Contributions for self employed people are calculated as 12.6% of a pre‑determined “notional” income which varies depending upon profession or business activity.  The lowest level of “notional income” is €229 (Farmers; and similar professions; refuse collectors; workers in quarries, [...]

Profit from the sales of property in Cyprus is subject to Capital Gains Tax (CGT) at the rate of 20%.  CGT also applies to profits from the sale of shares in companies which own property in Cyprus, unless the company is listed on the stock exchange. Exemptions: in the following examples CGT does not apply: [...]

The rate of corporation tax is 10%.  Companies pay corporation tax. Sole traders and partnerships do not pay corporation tax.  All companies that are tax-resident in Cyprus are taxed on income whether it comes from Cyprus or anywhere else in the World.  Companies which are not tax-resident in Cyprus, but have a permanent establishment (office) [...]

Cyprus holds the key to giving your business the winning advantage. 10% corporation tax; one of the lowest rates in the EU The best holding company jurisdiction; 1% holding in foreign company entitles Cyprus Holding Company to tax benefits No inheritance tax No capital agains tax (except regarding Cyprus real estate) No tax on the [...]