Taxation & International Tax Planning

At 12.5% corporate tax rate & almost 50 double tax treaties, Cyprus has the EU's most attractive tax regime.

MS Lawyers assist with creating corporate entities that can benefit from Cyprus' attractive taxation regime.

Cyprus has the European Union (EU)'s most favourable tax system for corporate & individuals. At 12.5% corporate tax, it is one of the lowest tax rates in Europe. This comes with an extensive network of double taxation treaties with other countries - almost 50, as well as a host of over the advantages.

It is important to highlight that Cyprus is not an offshore tax haven. The Cypriot tax regime and tax legislation is in full conformity with both European Union Laws and Directives and with the Organisation for Economic Cooperation and Development (OECD). In fact, Cyprus has not only fully adopted all EU Directives, it has even gone further by not imposing minimum holding period, percentage holding and any other restrictions used by most Member States. This then also becomes one of the main tax benefits to business activities via Cyprus; that is, the sector's global recognition, conformity and credibility. Testament to this is also the extensive network of double taxation treaties, working closely with other nations to support their private business and encourage development and growth.

Tax planning advantages in Cyprus go far beyond saving tax. It is a complete business solution, especially to the EU and wider EMEA region, as well as a global financial structure for greater efficiency. These advantages span to large corporate companies, small and medium size enterprises (SME), as well as individuals.

Cyprus has concluded double tax treaties with almost 50 countries with a further 40 being negotiated. Most of these tax treaties with Cyprus follow the OECD Model Convention, although the US-Cyprus tax treaty follows the most recent model of United States Agreements. The following countries have double-tax treaties with Cyprus:

  • Azerbaijan
  • Armenia
  • Austria
  • Belarus
  • Belgium
  • Bulgaria
  • Canada
  • China
  • CIS (ex-USSR)
  • Czech Republic
  • Denmark
  • Egypt
  • Estonia
  • Finland
  • Germany
  • France
  • Greece
  • Hungary
  • India
  • Ireland
  • Italy
  • Kuwait
  • Kyrgyzstan
  • Lebanon
  • Moldova
  • Malta
  • Mauritius
  • Norway
  • Poland
  • Portugal
  • Qatar
  • Romania
  • Russia
  • San Marino
  • Serbia and Montenegro
  • Seychelles
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sweden
  • Syria
  • Tajikistan
  • Thailand
  • Ukraine
  • United Kingdom
  • United States of America
  • Yugoslavia

For more information contact MS Lawyers