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.

 
 
 
Maxim Golodnitsky
Maxim Golodnitsky
December 5, 2023
Best service, on time, efficient and always professional.
Krystian T
Krystian T
November 16, 2023
The best ❤️❤️❤️
Gina Chammas
Gina Chammas
August 25, 2023
The partner Angelo Aristodimou is an inspiring professional. He is dedicated to serving members of teh Network targeting good service to his clients as well as others who turn to the McMillan Woods Network. Thank you Angelo for all you did for our office in Lebanon!
Al mal
Al mal
August 12, 2023
Professional and pleasant to work with
The Poisonbolt
The Poisonbolt
August 7, 2023
We work online, but he’s the best accountant I’ve ever worked with!
Solonas Kyprou
Solonas Kyprou
April 28, 2023
Excellent accountants! Throughout the entire process, they went above and beyond to ensure that all of my accounting needs were met in a timely and efficient manner. They were always available to answer any questions I had and provided expert advice that helped me make informed decisions about my company.
Tim Disbrey
Tim Disbrey
March 17, 2023
Great service!
Lorenzo Strada
Lorenzo Strada
February 8, 2023
Studio affidabile e super professionale. Ci hanno seguito passo per passo nel nostro trasferimento a Cipro. Consigliatissimo
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