Background: Cyprus Companies
Posted: Wed Feb 19, 2025 10:00 am
The Benefits of Applying the Notional Interest Deduction in a Cyprus Company
Publication 9 June 2022
| Reference IN833
The reputation of Cyprus as an international financial centre has grown significantly over recent years. Cyprus is an attractive jurisdiction for trading and holding companies and offers a number of tax incentives.
The corporate tax rate in Cyprus 12.5%, which is amongst the lowest in Europe. Another lebanon mobile database feature is that Cyprus companies are not subject to Capital Gains Tax. In addition, Cyprus has over 60 double tax treaties to assist with international tax structuring, finally, as a member of the EU, Cyprus has access to all European Union Directives.
Tax Residency
A company that is managed and controlled from Cyprus is considered to be tax resident in Cyprus.
What is Notional Interest Deduction and When Does it Apply?
Cyprus tax resident companies and Cyprus permanent establishments (PEs), of non-Cyprus tax resident companies, are entitled to a Notional Interest Deduction (NID), on the injection of new equity used to generate taxable income.
Publication 9 June 2022
| Reference IN833
The reputation of Cyprus as an international financial centre has grown significantly over recent years. Cyprus is an attractive jurisdiction for trading and holding companies and offers a number of tax incentives.
The corporate tax rate in Cyprus 12.5%, which is amongst the lowest in Europe. Another lebanon mobile database feature is that Cyprus companies are not subject to Capital Gains Tax. In addition, Cyprus has over 60 double tax treaties to assist with international tax structuring, finally, as a member of the EU, Cyprus has access to all European Union Directives.
Tax Residency
A company that is managed and controlled from Cyprus is considered to be tax resident in Cyprus.
What is Notional Interest Deduction and When Does it Apply?
Cyprus tax resident companies and Cyprus permanent establishments (PEs), of non-Cyprus tax resident companies, are entitled to a Notional Interest Deduction (NID), on the injection of new equity used to generate taxable income.