Tax Planning in Cyprus

OUR FIRM PROVIDES A COMPREHENSIVE RANGE OF TAX SERVICES.

Cyprus is an international financial centre due to having one of the lowest tax rates (12.5%) in the EU. An increasing number of foreign investors use Cyprus based companies for their international business.

Tax planning is an excellent opportunity to increase the bottom line of a business. Because we work so closely with our clients, we always identify opportunities to save money through astute tax planning, whilst complying with the tax legislation.

McMillan Woods Cyprus services cover all taxes that affect business entrepreneurs, bearing in mind that tax is a “business” cost. Our goal as a firm is to minimise tax liabilities. Our team of professionals work closely with our clients in order to develop a clear tax planning strategy; whether this is for a business corporation or for an individual.

Our tax advisors can assist individuals or legal entities to adopt the right company structure in Cyprus or abroad in a tax efficient manner. The legal structure will affect the total tax burden on the investment by maximizing the return to the shareholder. Our experienced team examines the nature of the investment, the possible tax aspects that may arise and proposes an optimum tax structure for implementation.

Our firm strictly believes that tax planning should be a proactive approach to investment decision making, rather than a reactive one, in order to protect the wealth of a company. We make sure to let our clients know that we can also review tax exposure of an existing structure and provide restructuring options when or if needed.

Tax Compliance

Our firm provides a comprehensive range of tax services. Through our experienced and qualified team, we ensure compliance with the current local and international tax legislation which includes the following:

Tax Advisory

  • International tax planning structures
  • Tax review
  • Tax rulings
  • Tax clearance

Tax Administration

  • Registration within the Inland Revenue Department
  • Preparation and submission of annual tax returns
  • Tax Residency Certificates
  • Preparation of annual income tax computations
  • Preparation and submission of Annual Provisional tax declarations

Cyprus Tax FAQs

Cyprus has one of the lowest tax rates in Europe, the efficient legal, the accounting and banking system, the European standard of living, the hospitality, friendliness and the high level of competence of Cypriots as well as the strategic geographical location and the good social and industrial infrastructure are among the factors contributing to the success of Cyprus as an international business centre.

 

Dividend income is tax exempt and there is no withholding tax on dividends.

 
 

Yes, Intellectual Property (IP) including copyrights, patented inventions and trademarks has an exemption of 80% of the overall profit derived from the qualifying intangible asset.

 
 
 

Profits realised on disposal of securities/shares in subsidiaries, bonds, derivatives, stocks etc., are not subject to taxation in Cyprus. This applies to all gains including capital gains and gains from trading in securities.

 
 
 
 

Foreign pension income is taxed at the flat rate of 5% on amounts over €3.420.

 
 
 
György Gyólai
György Gyólai
March 7, 2024
I have been in an excellent business relationship with Angelo and the team of McMillan Woods Cyprus for many years. They are among my most important partners. Angelo is the most experienced expert in establishing and managing Cypriot companies, as well as in Cypriot tax compliance matters. Angelo is reliable, fair, knowledgeable, and consistent, which I highly appreciate. As a corporate service provider, reliability and expertise are the most important factors for me. Clearly, I wouldn't want to work with any other Cypriot company service provider, only with Angelo and his team.
Maciej Oniszczuk
Maciej Oniszczuk
February 29, 2024
We cooperate for many years. I highly recommend Angelo and his team for their experience, expertise, and exceptional service.
Keane Gibbons
Keane Gibbons
January 18, 2024
nice
Marci
Marci
January 17, 2024
Professional, helpful team with good availability and communication. I recommend them 10/10.
Bambos Demetriou
Bambos Demetriou
January 2, 2024
I highly recommend Angelo and his team for their experience, expertise, and exceptional service. They understood my financial circumstances and provided tailored advice to help me reach my goals. Their communication skills are excellent, and they are always available to answer questions. They prioritized my best interests and were confident in their abilities. I am grateful for their outstanding service.
Peter Ruggle
Peter Ruggle
December 30, 2023
excellent law firm; hihly experienced and very focused on the clients needs
Mariusz
Mariusz
December 29, 2023
I cannot praise McMillan Woods Cyprus enough for their exceptional professionalism, expertise, and customer service. From the start, their team showcased unparalleled knowledge in both legal and accounting matters. What sets the Company apart is their commitment to delivering not just service, but outstanding experiences. The team's attention to detail, prompt responses, and ability to simplify complex issues have consistently exceeded my expectations. I highly recommend it to anyone seeking top-notch legal and accounting services. Thank you for your unwavering commitment to excellence!
Firoo Cet
Firoo Cet
December 28, 2023
McMillan Woods was recommended to me by a friend, who worked also with them. It was the best decision i could have make. Everything went smooth and fast. They can assist you in nearly everything. Thank you!
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