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Capital Gains Tax (CGT)

The rate of Capital Gains Tax is 20% on profits obtained from the sale of immovable property situated in Cyprus, after providing for an increase indexation payment. The capital gains that are obtained from the sale of immovable property situated in a foreign country are exempt from capital gains tax.

Company Law

The first step in order to set up a company is to send to the Registrar of companies an application for name approval. The name must not be similar with the name of an existing company and on the application you have to declare what the trade of the business will be.

Corporation Tax

Companies’ taxation also depends on their residential status. A company is considered to be a Tax Resident if it’s managed and control in Cyprus.  While the tax law doesn’t give a definition about managed and control, it’s generally accepted that it’s the place where board of decisions are taken and where the directors reside.

Tax for Individuals

Taxation of Individuals depends on their resident status. CyprusTax resident is the individual who is resident for more than 183 days in a year of assessment, in the Republic.  Tax Residents are taxed on their worldwide income.

Cyprus "Start Up Visa" (Start up permit Scheme)

The programme/scheme will operate on a pilot basis for two (2) years from February 2017 to February 2019. During this two-year period 150 visas will be issued.

Cyprus International Trusts (CITs)

In simple terms, a trust is an arrangement whereby a settlor, transfers property to a trustee, who is an independent person with no benefit from the trust, to hold for such time as the trust shall prescribe (could be for an indefinite period) for the benefit of a beneficiary.

Cyprus Tax Residency at 60 days

Cyprus has introduced new legislation that offers the possibility of zero tax environment for non domicile tax residents who live in Cyprus only 60 days per calendar year, as analysed below.

Social Insurance Contributions and Deductions

From 1st of January 2019 the Social Insurance contributions and deductions are as follows

General Healthcare System (GHS) Fund

The GHS Fund revenues will come from contributions, co-payments, personal contributions 1, donations and legacies, income from assets of the HIO and any other income accrued from the activities of the HIO

Tax diary

Main obligations and deadlines 

Employment Permits for 3rd Countries Personnel

On 29.11.2006, the Council of Ministers, established the policy for issuing and renewing residence and employment permits for personnel from third countries who are employed in companies of foreign interests that are registered in the Republic.

Value Added Tax (VAT)

Value Added Tax is an indirect tax which is imposed on goods and services at each stage of production, starting from raw materials to final product. VAT is levied on the value additions at different stages of production. Vat applies to a supply of goods or services, to intra – E.U. acquisitions of goods from fiscal warehousing arrangements and to importation of goods.

Stamp Duties

Cyprus stamp duty is levied on ‘documents’ (i.e. written agreements/contracts) relating to assets located in Cyprus and/or matters or things taking place in Cyprus.

Non-Domiciled Rules in Cyprus

A “non-domicile” (non-dom) individual, with tax exemptions over dividends and interest earned by qualifying as “non-doms”. With this amendment, individuals who have non-dom status are no longer subject to Special Defence contribution (SDC) noting, as well, that the new law creates an attractive tax environment for non-doms residing in Cyprus.