Corporate Tax in Cyprus

All Cypriot tax resident companies are taxed on income earned or derived from all taxable sources in Cyprus and abroad. A company is tax resident in Cyprus if it is managed and controlled in Cyprus. From 1 January 2023, a company registered in Cyprus is considered a tax resident of Cyprus by default, provided it is not tax resident in any other jurisdiction.

The corporate income tax rate is 12.5%.

Exemptions: The following types of income are exempt from corporation tax:

• Profits from the sale of securities;

• Dividends;

• Interest not arising from or closely related to ordinary business activities;

• Gains related to exchange rate differences, except for exchange rate differences arising from foreign exchange trading and derivatives related to them.