2023 CIFA Investment Funds Guide
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48 CYPRUS INVESTMENT FUNDS <strong>2023</strong>-24<br />
Investor Taxation<br />
Foreign investors<br />
• no withholding tax on dividends<br />
• no taxation on redemption of units<br />
Double Tax Treaties<br />
Cyprus has concluded Double Taxation<br />
Treaties (DTTs) with 67 countries, which<br />
provide important tax advantages.<br />
• no deemed distribution restrictions<br />
Resident investors – Domiciled<br />
• Option of 8% flat rate taxation on performance<br />
based variable remuneration for certain employees<br />
• a withholding tax on dividends of 17% if the investor is an<br />
individual who is both tax resident and domiciled in Cyprus<br />
• no taxation on redemption of units<br />
• no withholding tax if investor is a company<br />
Resident investors – Non-Domiciled<br />
• Option of 8% flat rate taxation on performance<br />
based variable remuneration for certain employees<br />
• exemption from withholding tax on dividends of 17%<br />
• no taxation on redemption of units<br />
• no withholding tax if investor is a company<br />
Fund Taxation<br />
• gains from trading in securities are tax exempt<br />
• Notional Interest Deduction (NID) for new equity<br />
may reduce taxable base for interest received by<br />
up to 80% (for company-type funds) reducing<br />
the effective tax on interest to 2.5%<br />
• excluded from tax are dividends received, capital gains<br />
arising from sale of property abroad, capital gains<br />
from sale of shares of foreign property companies<br />
• no subscription tax on the net assets of the fund<br />
• fund management services provided to<br />
alternative funds are not subject to VAT<br />
• each compartment of an AIF, although legally<br />
is not treated as a separate entity, for tax<br />
purposes each compartment is treated as a<br />
separate person (i.e. separate taxpayer)<br />
1. Andorra<br />
2. Armenia<br />
3. Austria<br />
4. Azerbaijan<br />
5. Barbados<br />
6. Belarus<br />
7. Belgium<br />
8. Bosnia<br />
9. Bulgaria<br />
10. Canada<br />
11. China<br />
12. Czech Republic<br />
13. Denmark<br />
14. Egypt<br />
15. Estonia<br />
16. Ethiopia<br />
17. Finland<br />
18. France<br />
19. Georgia<br />
20. Germany<br />
21. Greece<br />
22. Hungary<br />
23. Iceland<br />
24. India<br />
25. Iran<br />
26. Ireland<br />
27. Italy<br />
28. Jersey<br />
29. Jordan<br />
30. Kazakhstan<br />
31. Kingdom of<br />
Bahrain<br />
32. Kuwait<br />
33. Kyrgyzstan<br />
34. Latvia<br />
35. Lebanon<br />
36. Lithuania<br />
37. Luxembourg<br />
38. Malta<br />
39. Mauritius<br />
40. Moldova<br />
41. Montenegro<br />
42. Netherlands<br />
43. Norway<br />
44. Poland<br />
45. Portugal<br />
46. Qatar<br />
47. Romania<br />
48. Russia<br />
49. San Marino<br />
50. Saudi Arabia<br />
51. Serbia<br />
52. Seychelles<br />
53. Singapore<br />
54. Slovakia<br />
55. Slovenia<br />
56. South Africa<br />
57. Spain<br />
58. Sweden<br />
59. Swiss Confederation<br />
60. Syria<br />
61. Thailand<br />
62. The States of Guernsey<br />
63. Ukraine<br />
64. United Arab Emirates<br />
65. United Kingdom<br />
66. USA<br />
67. Uzbekistan
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