2023-Cyprus-Country-Report
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CYPRUSCOUNTRY REPORT <strong>2023</strong><br />
TAXATION<br />
Tax and Regulatory<br />
Regime of <strong>Cyprus</strong><br />
<strong>Cyprus</strong> offers one of the most attractive tax regimes<br />
in Europe. A member of the European Union since<br />
2004, <strong>Cyprus</strong>’ regulatory regime is in full compliance<br />
with the requirements of the EU and OECD. <strong>Cyprus</strong> has<br />
one of the lowest EU corporate tax rates at 12.5%. The<br />
island’s advantageous tax rate coupled with an extensive<br />
list of double tax treaties places it high on the list of<br />
preferred jurisdictions for international tax planners.<br />
CORPORATION TAX<br />
The Corporation Tax Rate in <strong>Cyprus</strong> is 12.5%.<br />
BASIS OF TAXATION<br />
All companies that are tax residents of <strong>Cyprus</strong> are taxed on their income accrued or<br />
derived from all sources in <strong>Cyprus</strong> and abroad. A non-<strong>Cyprus</strong> tax resident company is<br />
taxed on income accrued or derived from a business activity which is carried out through<br />
a permanent establishment in <strong>Cyprus</strong> and on certain income arising from sources in<br />
<strong>Cyprus</strong>. A company is considered tax resident of <strong>Cyprus</strong> if it is managed and controlled<br />
from <strong>Cyprus</strong>. As of <strong>2023</strong>, a <strong>Cyprus</strong> incorporated company is by default considered a tax<br />
resident of <strong>Cyprus</strong> provided it is not tax resident in any other jurisdiction.<br />
Trilogy, Limassol<br />
77
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