Taxes, Residency, Investments

Cyprus company in international investments

From an international investment perspective, foreign companies in Cyprus obtain further access to more destinations with which they do not maintain a treaty themselves.

The exploitation of such additional targeted markets can result in further investments based on a global scale. This ensures that Cyprus can constitute a route for such investments to European, African, Asian and American markets.

Capital gains treatment

Cypriot companies investing in immovable property in other jurisdictions are also in a position of obtaining further business benefits from the capital gains treatment.

In Cyprus, capital gains derived from the disposal of the shares of the company which owns immovable property abroad (directly and/or indirectly) are not subject to capital gains tax.

Foreign permanent establishments

Profits of a foreign permanent establishment of Cypriot companies are tax exempt in Cyprus. This allows Cypriot companies which have operations in international markets to operate abroad while at the same time optimizing the commercial and tax benefits of Cyprus.

Basis of taxation

A company is considered as a Cyprus Tax Resident if it is managed and controlled from Cyprus.

A person is considered a Cyprus Tax Resident if they spend more than 183 days in a calendar year in Cyprus. For tax residents, all chargeable income from Cyprus and abroad is taxable in Cyprus.

Additional tax benefits, under the new non-domicile scheme, are also awarded to foreign individuals who choose Cyprus as their base to live. For non-tax residents only, income derived from sources in Cyprus is taxable.

The Cyprus Tax Regime

Cyprus’ tax regime is relatively simple, tested and workable. As seen below, the following circumstances in Cyprus constitute an ideal situation for operating a company, especially as an intermediate or ultimate holding entity.

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