Tax Advantages & Double Tax Treaties
Cyprus’ Corporation Tax is 10%, which is considered an incredibly low tax rate, thus appeals to many individuals who consider moving to the island and beginning a new business venture. Nonetheless, to qualify, the administrative and management headquarters of the business must be located on the island.
Retired individuals who consider moving to Cyprus are not imposed any withholding taxes. They may be charged a low rate of 5% if they exceed the €6,000 per person allowance.
The island has also agreed upon Double Tax Treaties with over 45 countries in the world until the present day. Cyprus is currently in negotiations and concessions with a plethora of other countries so as to sign bilateral agreements concerning taxation. Double Tax Treaties are made so people’s income is not taxed twice in any of the countries that have agreed to the treaty.
Overall, the citizens of countries, which have completed a Double Tax Treaty with Cyprus, can benefit from the island’s low tax rate.