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Why Cyprus is a Tax-Friendly Hub for Businesses and Individuals

  • Alexandrou Corporate
  • 6 days ago
  • 1 min read

When entrepreneurs and professionals look for a business base, Cyprus often tops the list. Why? Because it combines one of the EU’s most competitive tax regimes with a welcoming environment for individuals.


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For Companies:

  • 12.5% Corporate Tax Rate – among the lowest in the EU.

  • IP Box Regime – qualifying IP income can enjoy an effective tax rate as low as 2.5%.

  • Notional Interest Deduction (NID) – reward for financing with new equity, reducing taxable income.

  • No Withholding Taxes – on dividends, interest, and royalties (with some exceptions).

  • Exemption on Securities Gains – disposal of shares, bonds, and financial instruments is tax-free.

  • Loss Carry-Forward – losses can offset profits for up to five years.


For Individuals:

  • Non-Domicile Regime – no defence tax on dividends, interest, or rental income.

  • 50% Employment Income Exemption – for new residents earning €55,000+, valid for 17 years.

  • 60-Day Rule – residency achieved with just 60 days in Cyprus (subject to conditions).

  • No Inheritance or Wealth Tax – making long-term planning easier.



At Alexandrou Corporate Services, we help you navigate Cyprus’ unique tax landscape—maximising your benefits while keeping compliance simple.


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