Cyprus Double Tax Treaties

Cyprus agreements on the avoidance of double taxation

Amazon Corporate&Immigration Services experience allows us to offer the clients a full range of services specifically designed for the professional intermediary companies, as well as customized solutions fully tailored to their needs.

Our company provides consultations and gives advice on the international tax planning, tax administration, international VAT settlements, as well as local taxes and VAT in Cyprus.

We offer tax strategies tailored to the needs of our clients and designed to improve their business in accordance with the applicable law, taking into account all the applicable taxes - corporate or personal, as well as taxable income as a result of business taxation, inheritance tax, income tax capital, VAT and other taxes.

We can effectively and accurately develop a strategy to reduce your current tax liabilities both in Cyprus and abroad, considering the process on a larger scale, taking into account the specifics of each of the jurisdictions involved.

Tax planning through Cyprus

Cyprus has consistently been recognized as one of the most attractive European tax regimes by large commercial organizations and tax professionals throughout Europe. It is also the leading jurisdiction for holding, finance, licensing and trading companies. Cyprus received such a high rating for the stability of tax legislation, consistency in its interpretation and low tax rates (including VAT).

Thus, Cyprus is one of the EU offshore jurisdictions with the lowest taxes. The standard corporate tax rate of 12.5% is one of the lowest in the European Union and the lowest corporate tax rate in non-offshore jurisdictions of the world.

Cyprus does not apply any withholding taxes for the payment of the dividends and the interest by Cyprus tax residents to non-Cyprus tax residents. There is also no withholding tax on the royalties granted for the use outside Cyprus.

Cyprus can boast of an extensive network of double tax agreements and is generally considered the preferred jurisdiction for directing the investments in:

  • The European Union: Cyprus is commonly referred to as the gateway to doing business in the EU. It is chosen by the investors from the USA, Canada, China, Russia and other jurisdictions to structure investments in the EU. Through the use of the EU Parent and Subsidiary Directive and the EU Revenue and Royalty Directive, a Cypriot holding, trading or finance company is the most efficient means of doing business in the EU.
  • Eastern Europe: Cyprus has historically been the main choice for directing the investments in Eastern Europe, namely Bulgaria, Check Republic, Hungary, Poland and Romania.
  • China: Cyprus is commonly used in the international tax strategies for the globalization of Chinese companies and the companies seeking to enter the Chinese market.
  • CIS countries: Most of CIS countries apply the agreement between the USSR and Cyprus dated October 29, 1982 (withholding 0% on the payments of the dividends, interests and royalties).
  • Russia: According to the statistics, Cyprus is the largest foreign investor in Russia. The dividends paid from Russia to Cyprus are subject to 5% withholding tax only. Read more about the agreement on the avoidance of double taxation between Russia and Cyprus in the blog.
  • Other jurisdictions: Cyprus is commonly used to direct the foreign investments to the Middle East and Far East, as well as Africa.