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Everything You Need To Know About Tax In Cyprus

Posted by on May 28, 2014

Cyprus is an island nation in the eastern Mediterranean Sea, known for its beaches, ancient ruins, and cultural attractions. It is also a popular destination for businesses due to its favorable tax and regulatory environment.

The corporate tax rate in Cyprus is 12.5%, one of the lowest in the European Union. This rate applies to both resident and non-resident companies, and there are no withholding taxes on dividends, interest, or royalties. In addition, there are several tax incentives available to businesses, including a special tax regime for companies involved in international shipping, a reduced tax rate for income from the exploitation of intellectual property, and exemptions from tax on the sale of securities.

There are also a number of regulations that businesses operating in Cyprus must follow. These include employment laws, which outline the rights and obligations of employers and employees, and health and safety regulations, which set out the minimum standards for the workplace. Businesses must also obtain various licenses and permits in order to operate, such as a business license and a license for the use of any commercial premises.

Overall, Cyprus offers a favorable tax and regulatory environment for businesses, making it an attractive destination for investors and entrepreneurs.

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