TAX ADVICE IN CYPRUS

What taxes must be paid in Cyprus?

Income tax (CIT), dividends, interest and royalties paid to non-residents of Cyprus are not subject to income tax at the source of payment. The exception is royalties obtained on the rights used in Cyprus. They are subject to taxation at a rate of 10% (in the case of cinematographic films – 5%).

Technical services provided by non-residents in Cyprus are taxed at a rate of 10%. However, if such services are provided through a non-resident permanent establishment in Cyprus or are provided between related companies, they are not subject to taxation.
Income received by non-residents from any professional activity or remuneration of non-resident public artists in Cyprus is taxed at a rate of 10%.

Income received in Cyprus by non-residents (if they do not have a permanent establishment) for the provision of services in the field of exploration, production or operation of the continental shelf, as well as the creation and use of pipelines and other installations on land, seabed and sea surface, is taxed 5%.

VAT – there is a general rate of 19% for most activities, but there are privileged categories, they apply to export operations – 0%, sales of food, pharmaceuticals and books – 5%, restaurants, hotels and carriers – 9%. The following activities are also not taxed:

• Postal services provided by the national postal authority
• Most banking, financial and insurance services
• A large number of medical and dental services
• Identified cultural, educational and sports activities
• Transfer of real estate, except for the transfer of buildings before their first use, including the transfer of land

Capital Gains Tax – 0.2, 2 for property owners in Cyprus (levied on the sale of objects or shares of owner companies).

The registration fee is a mandatory payment, as it is paid as a confirmation of the fact of registration and stay of a legal entity, such a fee is – 350 euros.

Stamp Duty – a fee for certifying documentation on changes in the status of property and other assets, the amount of payments ranges from 0.07 euros to 80 euros in a fixed expression or in proportion to 0 to 0.2 of the amount of remuneration (but not more than 17 086 euros).

Optimization of taxes (taxation) in Cyprus

The professional help of tax lawyers in Cyprus is to find legal and completely legal mechanisms through which businesses can pay much lower taxes.

Preferential treatment applies to:

• Insurance companies
• Recipients of pensions, if they are earned abroad, payments to widows
• Transactions with intellectual property
• For film production
• Professional activity of persons who have not received the status of a resident (artists, athletes)
• Non-residents, if they are engaged in the oil sector
• Maritime business

A tax lawyer (lawyer) in Cyprus will advise you on choosing the optimal tax system for business in Cyprus on

• value added tax in Cyprus VAT (value-added tax),
• corporate income tax (CIT – corporate income tax),
• personal income tax (PIT – personal income tax)
• social contributions from employees (ZUS)
• local tax in Cyprus
• tax on dividends in Cyprus
• excise duty in Cyprus

Tax optimization / exit tax / tax planning (Cyprus)

Among the most common tax optimization mechanisms in Cyprus:

• Creating a group of companies that includes funds in Luxembourg, the Netherlands, Liechtenstein and other jurisdictions, depending on the profile of your business and its features.
• Expanding your business to favorable tax residencies (Hong Kong, Singapore, Slovakia)
• System of refinancing of foreign assets

Representation in the tax authorities in Cyprus from Prykhodko and partners – includes consulting, preparation of all necessary documentation of the relationship with the tax authorities of Cyprus and the EU on tax issues.

Responsibilities of the tax lawyer of Prykhodko Law Firm and partners:

• Tax advice in Cyprus
• Tax assessment in Cyprus
• Preparation of tax documents in Cyprus
• Tax Representation in Cyprus
• Settlement of tax disputes in Cyprus

What is the cost of tax advice in Cyprus? Leave your phone number and our specialists will contact you.

Legal decisions on tax optimization are our profile, which you will be able to see during a consultation with a tax lawyer. No law or regulation requires a person or business to pay more than it should.
We will help you save and save your money so that your business grows quickly and legally.