Vasiliou Law provides assistance on issues of tax law as well as international tax planning, in relation to the personal scheme as well as corporate schemes.
Cyprus enjoys one of the lower corporate tax in Europe, being 12.5%. All Cyprus tax resident companies are taxed on their income accrued or derived from all chargeable sources in Cyprus and abroad, in order for a company to obtain the status of the Cyprus tax residency it must be managed and controlled in Cyprus. There are certain highly favorable exemptions from corporate tax subject to certain conditions, being: dividend income, interest income (excluding interest from the ordinary business), Foreign Exchange gains, gains from disposal of securities, gains from restructuring. As well as that Cyprus has a rather competitive VAT rate of 19% and numerous double tax treaties.
Individual tax residents of Cyprus are taxed on the basis of their income deriving from sources within and outside of Cyprus. An individual who is not a tax resident in Cyprus is taxed on income arising only from sources within Cyprus. An individual may qualify as a tax resident of Cyprus if he spends more than 183 days per annum in Cyprus. However, the concept of Non- Domicile, applicable from 1st of January 2017, to enjoy the status of a Cyprus Tax Resident without residing in Cyprus for 183 days, provided the following criteria are met:
- He does not spend more than 183 days in any other country;
- He is not a tax resident of any other country;
- Spends at least 60 days in the Republic;
- He has a residential property in Cyprus (owned or rented);
- Carries out business in Cyprus or is employed in Cyprus.