Tax System

Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations. Its main features are:

  • One of the lowest corporate income tax rates in the EU at 12.5%
  • Dividend participation exemption
  • Exemption on disposal of securities (e.g. shares, bonds, debentures)
  • No withholding taxes on dividend, interest and royalty payments abroad
  • No capital gains tax (except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains are attributable to the real estate holding)
  • No succession taxes
  • Attractive IP regime
  • Tonnage tax for shipping companies
  • Notional interest deduction for investments into Cyprus companies
  • Personal tax exemptions for new residents and non-domiciled individuals
  • More than 60 double tax treaties 

For more information, please click here for the Cyprus Tax Guide.



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