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Cyprus tax services

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Cyprus offers 15% corporate tax, no withholding tax on dividends/interest to non-residents, and 65+ double tax treaties. Tax planning tools include notional interest deduction and IP box reducing effective rates to approximately 2.5% on qualifying income, with VAT/VIES filings, transfer pricing compliance, and audit representation.

Legarithm provides Cyprus tax advisory covering corporate and personal taxation, VAT registrations, One Stop Shop filings, substance requirements for financial services and crypto businesses, AML/KYC readiness, and many other services.

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Advantages

  • Tropical island aerial view
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    Attractive Tax Rates

    A stable corporate income tax rate of 12.5%.

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    Strategic Incentives

    • IP Box Regime: An 80% deduction on qualifying profits from intangible assets, potentially reducing the effective tax rate to approximately 2.5%.
    • Notional Interest Deduction (NID): Deduction on new equity to neutralize debt-equity bias and lower the tax base.
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    Dividend & Interest Benefits

    No withholding tax on dividends and interest paid to non-residents.

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    Extensive Treaty Network

    Access to over 65 double tax treaties and EU Directives.

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    Personal Tax Perks

    “Non-domicile” status for individuals can eliminate defense contributions on dividends and interest; attractive rates for new residents (including the 60-day residency rule).

Requirements

Tax Residency (Corporate)

The company’s directors must make key decisions in Cyprus, with board meetings held on the island.

Substance

Real presence is mandatory (staffed office, local directors with decision-making power, and local bank mandates).

Registration Thresholds
  • VAT: Mandatory registration if turnover exceeds €15,600 in 12 months.
  • Corporate: Mandatory annual statutory audit under IFRS for every Cyprus company.
Compliance & Reporting:

  • Maintenance of contemporaneous Transfer Pricing (TP) documentation for related-party transactions.

  • Submission of annual tax returns (TD4) and provisional tax payments.

  • Adherence to AML/KYC standards, especially for regulated sectors like Crypto (CASP).

Step-by-Step Process

  • Step 01

    Structuring & Planning

    Map out the business model, supply chain, and IP locations to align with Cyprus tax rules.

  • Step 02

    Registrations

    • Apply for a Tax Identification Number (TIN).

    • Register for VAT/VIES/OSS if applicable (takes approximately a few weeks).

  • Step 03

    Substance Build-out

    Set up a physical office, hire local staff/directors, and establish management protocols.

  • Step 04

    Operational Compliance

    • Ongoing bookkeeping and monthly/quarterly VAT reconciliations.

    • Preparation of Transfer Pricing files (Local/Master files).

  • Step 05

    Reporting Cycles

    • Provisional Tax: Payments due in July and December.
    • Annual Audit: Completion of statutory audit by certified auditors.
    • Final Tax Return: Submission of the annual return (approx. 15 months after year-end

Services

Corporate Tax Compliance

Preparation of computations, NID and IP Box calculations, and filing of annual returns.

Tax Advisory & Structuring

International tax planning, treaty analysis, and Pillar Two readiness.

Indirect Tax (VAT)

VAT/VIES registrations, OSS/IOSS filings, and customs/excise reviews.

Transfer Pricing

Policy design, benchmarking studies, and preparation of Master/Local files.

Personal Taxation

Onboarding for non-doms, 60-day rule residency applications, payroll, and social security (GHS) reporting.

Regulated Sector Support

Tax and compliance support for Funds (AIF/RAIF), Shipping (Tonnage Tax), and Crypto (CASP registration).

Frequently Asked Questions

Still have question?

Can't find the answer to your question? Send us an email and we'll get back to you as soon as possible!
Do Cyprus treaties still work in practice?

Yes—Cyprus maintains a broad treaty network. Relief depends on residency and substance.

Is crypto taxed in Cyprus?

It depends on the activity. Trading as a business is taxable; investment treatment can differ. Facts drive the answer.

Is Cyprus only about holding companies?

Not anymore. IP, shared services, funds, energy, and shipping are active real‑economy plays with credible tax and regulatory frameworks.

How “local” do directors need to be?

Local, available, and engaged. Decision‑makers who read papers, challenge proposals, and sign in Cyprus. That’s what stands up in an audit.

We Are Always Available

Our team ensures your business setup is smooth, efficient, and compliant with local laws. Contact us today to discuss your project.

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Cyprus, Limassol

Arch. Makarios Av. III, No. 1-7, Mitsis Building 3, 3rd floor, Office 302, 1065 Nicosia

+357 25 123 914
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Tallinn,  Harju maakond, Lasnamäe linnaosa, Ruunaoja tn 3, 11415

+372 602 8480
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Building A1, Dubai Digital Park, Dubai Silicon Oasis, Dubai, UAE

+971 58 562 5998
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Kyiv, Mykhailo Boychuk Street, Office 3011, 01103, Ukraine

+380 73 372 0070
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228 Park Ave S, New York City, New York, 10003, USA

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