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• Cyprus has the lowest corporate tax rate (10%) in the European Union (EU).

• Available tax exemptions in relation to dividend income, profits from overseas permanent establishments and profits from the sale of securities.

• No withholding tax on dividends, interest and royalties paid from Cyprus.

• Cyprus has 45 bilateral double tax avoidance treaties.

Human Resource Development Authority of Cyprus (HRDAC)

 The Human Resource Development Authority of Cyprus (HRDAC) provides funding in the form of grants to support a wide spectrum of training needs for any size company registered in Cyprus.

Among the most popular funding opportunities are:

• In-company training for developing and upgrading skills
• Training provided by private training organizations in various fields

For more information: www.hrdauth.org.cy

The significant tax advantages and tax incentives offered by Cyprus to international companies with a Cyprus tax-resident base include:

• Favourable tax regime including corporate tax rate of 10%, the lowest rate in the EU and the Eurozone.
• Double Taxation Agreements with more than 45 countries.
• Cyprus companies qualify for the application of EU Tax Directives and enjoy exemption from any withholding tax on inbound dividends, interest and royalty payments.
• Cyprus companies qualify for EU tax-free reorganizations.
• Possibility for establishing an SE (European Company) in Cyprus.
• Outbound dividends paid by Cyprus companies to their non-resident shareholders are exempt from any withholding taxes.
• No withholding tax on outward payments of interest and royalties.
• Capital gains from the sale of immovable property situated outside Cyprus is tax exempt.
• Capital gains from the sale of securities are exempt.
• No taxation following the liquidation of the Cyprus holding company.
• No withholding tax on the distribution of profits.
• Profits attributed to a foreign permanent establishment of a Cyprus company are fully exempt from income tax in Cyprus.
• A diversified group of Cyprus companies belonging to a Cyprus holding company can utilize Group relief for the set of tax losses.
• No minimum holding period required from selling an investment tax free.
• No thin capitalization rules.
• Taxable losses carried forward indefinitely.

 Research Promotion Foundation (RPF)

The Research Promotion Foundation (RPF) provides funding in the form of Governmental grants aiming to promote the development of scientific and technological research in Cyprus and highlight fundamental importance of research in knowledge economies.

For more information : http://crpf.metacanvas.com or www.research.org.cy

De Minimis Funding Opportunities

Additionally, the Government of Cyprus provides funding in what are known as de minimis schemes which cover a wide spectrum of entrepreneurial interest. The planning of such funding is reviewed every three years and is limited to 200,000 euro per case over a period of three years.

For information: www.publicaid.gov.cy

The Ministry of Commerce, Industry and Tourism

The Ministry of Commerce, Industry and Tourism provides funding in the form of Governmental grants. The beneficiaries are existing, or new companies that have, or are planning to establish control laboratories, testing, analysis and calibration of machinery products.

For more information www.mcit.gov.cy/mcit

Warehousing Rules

The customs warehousing procedure allows the placement and storage in an approved customs warehouse of non-community goods, subject to customs control, until they are placed under a Customs-approved treatment or use. The customs warehousing regime allows imported goods to be warehoused without being liable to import duties and taxes or commercial policy measures. 

 For more information contact the Department of Customs and Excise at:

The Director, Department of Customs and Excise Customs Headquarters,

Tel.: +357 22 407510, Fax: +357 22 302031

E-mail: headquarters@customs.mof.gov.cy