We are often asked how you start your business here in Cyprus. What's the corporation tax rate? What's the personal tax rate? Do I need to be VAT registered? And all of that stuff.
But we are definitely not number crunchers so we have hooked up with the awesome number geeks at AKH accounting. And besides the following useful information it is free for all Cyhub members to contact AKH for advice.
19.501 – 28.000
28.001 – 36.300
A Cyprus company, if structured correctly, can provide a tax-efficient way to conduct international business. A company is considered to be a tax resident of Cyprus if it is "managed and controlled" in Cyprus. Cyprus tax resident companies are subject to tax on their worldwide income:
- Corporate Income tax (CIT) is rated @ 12,50%
- The effective CIT rate is reduced even further considering the exemptions on:
- Dividends from company to company are tax free.
- No withholding-tax on dividends to non-tax residents in Cyprus.
- Deductibility of expenses if incurred wholly and exclusively for the production of income.
Value Added Tax is imposed on the supply of all goods and services in Cyprus, on the acquisition of goods from other Member States and on the importation of goods from third countries.
Who is obliged to register?
Every individual or company is obliged to register:
Exempt supplies include:
Social Cohesion Fund