- Struggling to integrate and optimize the value of your complex global assets, like Intellectual Property and Yachts & Superyachts, with your Leasing and Headquartering strategy in Cyprus?
- Need expert guidance to seamlessly navigate the specific corporate and commercial regulations for setting up your business or qualifying for the Cyprus Filming Scheme?
Contact CX Financia today for tailored expert advice on your integrated corporate and commercial services in Cyprus.
Headquartering & Leasing
Setting up corporate headquarters in Cyprus or structuring financial leasing arrangements provides companies with a strategic EU base and a favourable corporate tax environment.
- Low Corporate Tax: Cyprus boasts a low corporate tax rate of 12.5% on net profits, one of the lowest in the EU.
- Double Tax Treaties: Access to an extensive network of over 60 Double Tax Treaties to mitigate international tax exposure.
- Notional Interest Deduction (NID): Provides a tax deduction on new equity capital, which can further reduce the effective corporate tax rate to approximately 2.5%.
Intellectual Property (IP)
Cyprus offers one of the most attractive IP tax regimes in Europe, allowing companies to maximize the after-tax income derived from their intangible assets through significant deductions and exemptions.
- Effective Tax Rate: An effective corporate tax rate as low as 2.5% on qualifying IP profits.
- Exemption: 80% of the net profit derived from the exploitation or disposal of qualifying IP assets is tax-exempt.
- International Compliance: The regime is fully compliant with the OECD’s modified “Nexus Approach” for certainty and stability.
Yachts & Superyachts
Registering yachts and superyachts under the Cyprus flag provides owners with substantial tax exemptions and the convenience of an internationally recognized EU flag.
- Tonnage Tax System: A highly favourable tonnage tax scheme that replaces corporate tax on shipping profits until 2029.
- Tax Exemptions: No tax on operational profits, dividends paid from the yacht-owning company, or capital gains on the sale of the yacht or its owning company’s shares.
- Low VAT: Access to a potential VAT regime for yachts that can lead to an effective VAT rate as low as 3.4% of the yacht’s value (subject to specific leasing schemes).
Cyprus Filming Scheme
The Cyprus Filming Scheme is a strong incentive program designed to attract international audiovisual productions by offering generous financial rebates and tax credits.
- Cash Rebates: Productions can receive a cash rebate of up to 45% of their eligible expenditure incurred in Cyprus (can be paid upon completion of filming).
- Tax Credit Option: Alternatively, companies can opt for a tax credit of up to 35% of eligible expenses against their corporate tax liability.
- VAT Refund: Eligibility for VAT refunds on a wide range of production-related expenditures, significantly reducing costs.
FAQ
What is the standard Corporate Tax Rate in Cyprus?
The standard corporate income tax rate is 12.5% on net profits, one of the lowest in the EU
Can a foreigner fully own and operate a company in Cyprus?
Yes, Cyprus allows for 100% foreign ownership of companies without restrictions
How is a company's tax residency determined in Cyprus?
A company is generally considered a tax resident of Cyprus if its management and control are exercised in the country, or if it is incorporated in Cyprus and is not a tax resident elsewhere
What is the Ultimate Beneficial Owner (UBO) Register in Cyprus?
The UBO register is a central electronic registry where all companies must record information about the natural person(s) who ultimately own or control the company, in compliance with EU Anti-Money Laundering directives).
Does Cyprus have agreements to prevent double taxation?
Yes, Cyprus maintains an extensive and growing network of Double Tax Treaties (DTTs) with over 65 countries, which aim to provide relief from double taxation on the same income).