Cyprus stands not only for sunny beaches and the sea, but also means taxes lower than in most European countries and an attractive banking system. If you are considering setting up a holding company or a company in a favourable jurisdiction, think about Cyprus. Check below what the taxes are like in Cyprus.
Taxes in Cyprus
The corporate income tax rate in Cyprus is 12.5%. All companies being tax residents of Cyprus are subject to this tax. It includes their income from all sources, both domestic and foreign.
There is an SDC tax in Cyprus, which concerns non-exempt dividend income, passive share income and rental income, but companies which are not Cypriot tax residents and do not own a plant there are exempt from it.
In the case of receiving interest which is related to the standard activity of the company, its taxation is subject to a rate of 12.5%. The interest received on closed and open-ended collective investment schemes is never subject to SDC taxation.
- There is no capital gains tax in force in Cyprus.
- There is no local corporate income tax either.
- The standard VAT rate in Cyprus is 19%.
In the field of international taxation, we will provide
Send your inquiry
Go back to previous page
- International tax planning consultancy
- Consultation for determining the appropriate tax residence
- Full support in the process of obtaining the right tax residence
- Intermediation in the contacts with Polish and foreign fiscal authorities
- All kinds of support for international tax settlements
HOW TO CHOOSE THE RIGHT COUNTRY TO MOVE TO?
Moving abroad is a highly significant step in life. Tax issues should come as the last matter to be considered. Think about where you would like to live, where your children should go to school and where you want to run a business. Only after honestly answering these questions, can you decide which country will be the most suitable for all your needs.
WHAT FORMALITIES DO I HAVE TO COMPLETE WHEN MOVING OUT OF POLAND?
There are many formalities, and they depend primarily on the current situation. The aim should be to completely sever all ties with Poland.
DO I HAVE TO FILE A TAX RETURN IN POLAND AFTER MOVING AWAY?
Tax returns in Poland are submitted by Polish residents or persons earning income in Poland who are residents of another country. It all depends on whether you have successfully relinquished your Polish residence. And if you have, it also depends on the kind of income you earn in Poland.
WILL I PAY TAX IN POLAND BECAUSE OF RELOCATING THE COMPANY ABROAD?
The question is about the broad subject of exit tax. First of all, you need to verify what moving the company abroad actually means. It can be both the relocation of the registered office of the company and the personal move of the entrepreneur – a natural person. The tax implications of both situations may be significantly different.
CAN I TRANSFER THE COMPANY'S ASSETS TO THE DESTINATION COUNTRY TAX-FREE?
The general limit below which you do not have to pay exit tax in Poland is PLN 4 million. Nevertheless, it is always necessary to check this issue because the transfer of the company’s assets to the destination country will not always mean the same thing.