Work & Life
in Cyprus
Cyprus Tax.
A Limited Company pays a Corporate Tax in Cyprus, i.e., corporate income tax of 12.5% of its profit. There is no other Cyprus tax on a Limited Company's profit. Notional Interest Deduction Since May 2015, an additional exemption applies: a tax credit for virtual interest on the company’s ... read more
Shareholder Agreement – What is it?
Last updated: October 14, 2016 at 7:04 am As the name implies, the shareholder agreement is an agreement between the shareholders of the Limited Company. It provides certainty as to the rules, and regulates the relations between the shareholders. You should never, in any circumstances ... read more
Emigrating to paradise.
In the summer of 2015 the Cypriot Parliament passed a law which makes Cyprus much more attractive as a country of immigration for wealthy foreigners. The Act introduces, alongside the concept of “Residence”, the concept of “Domicile”. This distinction is not known in German, Austrian or ... read more
Cyprus: Adapting to a Changing Business Environment.
The recent changes in the regulatory requirements and international tax reforms and initiatives such as the Base Erosion and Profit Shifting (BEPS) have had a major effect on international financial centers. The changes are a result of discussions held by organizations such as the Organization ... read more
Cyprus Private Partnership.
One or more silent partners (as limited partners) establish a private partnership, together with a managing partner as a general partner. The silent partners have no part in the management and apart from their deposit they carry no risk. The managing partner bears the risk and conducts the ... read more
Is Absolute Tax Certainty Ever Attainable?
Tax certainty is the basis of a stable tax system serving both taxpayers and governments. But is there anything simple about tax? Can the tax system ever be uncomplicated? Tax is a complicated subject and for every tax rule established, a way around would always be found. So, no, tax will ... read more
Cyprus Tax Residency.
Typically your tax residency is where you stay more than 183 days per year. This is also true in Cyprus. But now the government introduced a new rule: The 60 Day Rule. It is meant for the people who want to establish a Cyprus tax residency but have problems showing that they stay more than 183 ... read more
Description of the Cyprus KYC Rules.
What is the KYC procedure in Cyprus? Cyprus has been quick to adopt the Fourth Anti-Money Laundering (AML) Directive as a legislative proposal. In a bid to comply with the new reform, the following are the obligatory requirements in Cyprus: Individual Beneficial Owner: Passport copy ... read more
Cyprus Focuses on Substance
Recent developments highlight the importance of substance for companies in Cyprus who wish to operate and benefit from the advantageous Cypriot tax rates. A lack of substance can mean that the benefits of having a presence in Cyprus disappear - and also that the company no longer has a bank ... read more
Tax Payback on Company Capital
As we did write in our post regarding Cyprus tax, corporate entities, under certain circumstances, can deduct a hypothetical interest on the paid-up capital of the company. This deduction lowers the taxable profit of the company. The interest is calculated either on the yield of the ... read more
Cyprus IP Box – How does it work?
Cyprus has developed a favorable regulation on the taxation of intellectual property (IP), which is now fully in line with international developments in relation to the proper treatment of license revenues and the OECD guideline. Up to 80% of the license income is tax-free. With a ... read more
The EU Blacklist’s Impact on SMEs: A Critical Analysis for CEOs Eyeing Cyprus
In the ever-evolving realm of global tax policy, the European Council's recent update to the EU list of non-cooperative countries for tax purposes casts a new light on the intricacies of international business, particularly for CEOs of small and medium-sized enterprises (SMEs) considering ... read more
No Russian customers in Royce Office Cyprus
In February 2022, Russian dictator Putin launched an invasion of neighboring Ukraine. In this ongoing war, tens of thousands of innocents have perished, many brutally slain by Russian war criminals. We view this conflict as a struggle between oppression and freedom, autocracy and democracy. ... read more
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