Cyprus Taxation

Income Tax - Coporate

All companies that are tax residents of Cyprus are taxed on their income accrued or derived from all sources in Cyprus and abroad. A company is tax resident in the Republic if it is managed and controlled from the Republic. A company which is not tax resident in the Republic, is only taxed on income accruing or arising from sources within the Republic.

As at today the standard Corporate Income Tax rate in Cyprus is at a very favorable 12.5%.

Certain exemption rules apply to taxable income and we advise that you utilize the services of a trusted accounting firm in order to calculate the corporate tax payable for your business.

A simple online corporate tax calculator can be found through the following link:

Capital Gains Tax - Property Sale

Capital Gains Tax is imposed on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which directly own such immovable property. Specifically, Capital Gains tax is imposed on profits from the disposal of:

  • Immovable property situated in Cyprus
  • Shares of private companies whose property consists of immovable property situated in Cyprus.
  • Disposal of shares of listed companies in a recognized stock exchange are not subject to the Capital Gain Tax Law
  • Shares of companies which either directly or indirectly participate in a company or companies which own immovable property situated in Cyprus and at least 50% of the market value of such shares is derived from the relevant property.
  • A sale agreement of immovable property situated in Cyprus