1. The Republic of Cyprus is a Member State of the European Union since 2004
2. The Republic of Cyprus is a member of the European Monetary Union since 2008
3. The legal system of the Republic of Cyprus is based on English Common Law
4. European Union Directives and Regulations are applicable and effective on the national territory of the Republic of Cyprus
5. Corporate income tax is set at a 12,5% rate
6. The most popular type of legal entity in Cyprus is the limited liability company “LTD”.
7. The Republic of Cyprus is considered to be the 3rd maritime lobby in the European Union and the 11th internationally
8. The Republic of Cyprus offers the most competitive immigration program through the framework of the Cyprus Citizenship by Investment Programme, granting EU citizenship to physical persons
9. The Republic of Cyprus tax legislation is one of the most flexible and attractive, making it a popular destination for businesses and investors
10. In general, no taxation is applicable on dividend income (0%)
11. Since it’s abolition in 2017, there is no Immovable Property Tax in the Republic of Cyprus.
12. Foreign Exchange gains (FX) are subject to 0% taxation
13. There is a General principle of deductibility of interest, under the condition that the expense has been wholly and exclusively undertaken for the production of income.
14. Capital Gains Tax (CGT) is charged at a 20% rate with the possibility to be reduced to 0%
15. The Republic of Cyprus has concluded up to 64 Double Tax Treaties to date

The information exposed in the present article does not under any circumstances constitute
legal advice. For further information on the subject, please contact Arsen Theofanidis LLC
and one of our legal advisors shall be glad to assist you

N. Kalifatidou
Advocate – Legal Consultant
Arsen Theofanidis LLC