Tax Planning in Cyprus
From a tax perspective in particular, Cyprus is one of the most attractive locations worldwide for doing business, acquiring property or retirement. This is mainly due to:
•A uniform corporate tax rate of 10% – the lowest in Europe
•Extensive network of double tax treaties (33 countries)
•Probably the most favourable holding company jurisdiction
•Dividends can flow through the Cyprus entity totally tax-free
•Reasonable company incorporation and operating costs
•No withholding tax on dividends
•Ability to register for VAT purposes
•Exemption of estate duty on inheritance shares
•Low income tax for expatriates
•Advantageous tax system for pensioners