Company facts, Information and Requirements

servicescyprus tax planningCompany facts, Information and Requirements

Cyprus has been a member of the United Nations since its independence in 1960 and as from May 2004, it is also a full member of the European Union.

International Business Company

  • Type of Company- Limited Liability Company
  • Taxation - The corporate taxation rate is 12,5% of the net profit
  • Legislation - The Cyprus Company Law, Cap.113, based on the English Company Act of 1948
  • Ready-made companies are available
  • Money laundering legislation is in existence
  • Approval of the name for custom - made company can be obtained within 3-5 working days from the Registrar of Companies (here in after the “Registrar”)
  • After the approval of the name, incorporation of the custom - made company can be made within 2-3 working days
  • Documentation is received immediately after the incorporation
  • Certain words cannot be used within the company name for IBC's such as Securities, International, Royal etc.
  • Permission is required to use names such as Bank, Trust, Insurance etc.
  • Limited or Ltd must appear at the end of the company name
  • A registered office is required
  • Documents are to be maintained in the registered office
  • Bearer shares are not allowed
  • The minimum number of shareholders is 1 and the maximum is 50 shareholders
  • A Cyprus private company must have at least one director whereas a public company must have at least two
  • No residential, nationality or professional qualifications are required for the directors. Both physical and legal persons can be directors of a Cyprus company.
  • The general meeting must take place atthe registered office
  • There are no minimum legal requirements as to the minimum or maximum share capital of a Cyprus private limited liability company. However, for practical purposes, it is recommended that companies be incorporated with a minimum share capital of €1.000 divided into1.000 shares of €1 each. A public limited liability company (PLC) must have share capital of not less than €25.630. A public company must have at least seven shareholders.
  • The minimum number of directors is 1 provided that he/she is not also the company secretary
  • The company can act through a power of attorney granted by the Board of Directors (specific only)
  • A company secretary is required
  • Statutory accounting is required
  • Annual audited financial statements are required by are sident qualified auditor, licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC)
  • Annual audited financial statements must be filed at the Registrar of Cyprus Companies
  • Tax resident companies are required to submit an annual tax return

Costs in Set up and Maintenance of an International Business Company

The fees for the registration and set-up of a Cyprus International Business Company including all necessary company Certificates, Memorandum and Articles of Association etc. depends on many factors such as the capital of the IBC. A fee of 0,6% on the amount of the nominal value of the authorised share capital is payable to the Registrar.

Other costs such as accounting, audit etc. are time based and a quote is provided in advance. Furthermore, other services (e.g. obtaining of tax identification number, tax domicile certificates, VAT Services etc.) are also available upon request.

Disclaimer

The information contained in this web site has been prepared by KPSA for informational purposes only and is not an audit, accounting or tax advice. It is provided only as general information which may or may not reflect the most current legal developments. Consequently, the information should not be construed as legal, accounting, tax, investment or other professional advice or services. Each visitor is urged to consult one of our partners who understands the particular factual situation before making any decision, and KPSA disclaims any responsibility for any action taken by visitors in their specific cases or for any misinterpretation on the part of such persons. KPSA maintains this site in Nicosia, Cyprus and makes no representation that this site or any content on or accessed through the site are appropriate or available for use in other jurisdictions. You are responsible for compliance with all applicable laws and regulations.

Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Table -  4 Column
Source
in Millions
Cyprus tax resident
Companies
per Sq KM
Cyprus tax resident and
domiciled individuals
in Million of $
Cyprus tax resident but
non-domiciled individuals
in Million of $
Dividends from Cyprus tax resident companies
0% 

17% if received after the lapse of 4 years fromthe end of the year in which the profits were distributed
17%
0%
Dividends from non-Cyprus tax resident companies
0% 

However, 0% andnot 17% is applicable when:
a) more than 50% of the foreignpaying company’s activities result directly or indirectly in investment income,and
b) theforeign tax is significantly lower than the tax burden in Cyprus, i.e. lessthan 6,25%
17%
0%
Interest income arising from the ordinary activities or closely connected with theordinary activities of the business
0% but subject to corporation  tax
0% but subject to personal tax
0% but subject to personal tax
Other interest income
30%
30% (subject to conditions)
0%
Rental income less 25%
3%
3%
0%
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Transfer to children
0%
Transfer to spouse
0,1%
Transfer to a relative (up to 3rd degree)
0,1%
Penalties
Annual wear and tear allowances on assets
Rate %
in Millions
Late registration
€ 85 per month
Late deregistration
€85 one off
Late submission of VAT return
€100 per return
Late submission of VIES return
€50 per return
Late submission of Intrastat return
€15 per return
Late correction of mistake on VIES return
€15 per return
Failure to issue a lawful receipt
20% of the value of the supply
 Late payment of VAT
(i) 10% of the payable amount (one off)
(ii) and interestfor any complete month for which the amount remains due
Non-settlement of VAT amounts
Interest for every complete month for which the  amount remains due
Failure to apply the reverse charge  provisions
€200 per return which will not exceed the  penalty of €4.000
Table - 2 Column Wide
Period
Interest rate %
in Millions
Up to 31 December 2016
9
01/01/2007 – 31/12/2009
8
01/01/2010 – 31/12/2010
5,35
01/01/2011 – 31/12/2012
5
01/01/2013 – 31/12/2013
4,75
01/01/2014 – 31/12/2014
4,5
01/01/2015 – 31/12/2016
4
01/01/2017 – 31/12/2018
3,5
01/01/2019 – 31/12/2019
2
01/01/2020 – 31/12/2021
1,75
From 1 January 2022
1,75
servicescyprus tax planningCompany facts, Information and Requirements

Cyprus has been a member of the United Nations since its independence in 1960 and as from May 2004, it is also a full member of the European Union.

International Business Company

  • Type of Company- Limited Liability Company
  • Taxation - The corporate taxation rate is 12,5% of the net profit
  • Legislation - The Cyprus Company Law, Cap.113, based on the English Company Act of 1948
  • Ready-made companies are available
  • Money laundering legislation is in existence
  • Approval of the name for custom - made company can be obtained within 3-5 working days from the Registrar of Companies (here in after the “Registrar”)
  • After the approval of the name, incorporation of the custom - made company can be made within 2-3 working days
  • Documentation is received immediately after the incorporation
  • Certain words cannot be used within the company name for IBC's such as Securities, International, Royal etc.
  • Permission is required to use names such as Bank, Trust, Insurance etc.
  • Limited or Ltd must appear at the end of the company name
  • A registered office is required
  • Documents are to be maintained in the registered office
  • Bearer shares are not allowed
  • The minimum number of shareholders is 1 and the maximum is 50 shareholders
  • A Cyprus private company must have at least one director whereas a public company must have at least two
  • No residential, nationality or professional qualifications are required for the directors. Both physical and legal persons can be directors of a Cyprus company.
  • The general meeting must take place atthe registered office
  • There are no minimum legal requirements as to the minimum or maximum share capital of a Cyprus private limited liability company. However, for practical purposes, it is recommended that companies be incorporated with a minimum share capital of €1.000 divided into1.000 shares of €1 each. A public limited liability company (PLC) must have share capital of not less than €25.630. A public company must have at least seven shareholders.
  • The minimum number of directors is 1 provided that he/she is not also the company secretary
  • The company can act through a power of attorney granted by the Board of Directors (specific only)
  • A company secretary is required
  • Statutory accounting is required
  • Annual audited financial statements are required by are sident qualified auditor, licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC)
  • Annual audited financial statements must be filed at the Registrar of Cyprus Companies
  • Tax resident companies are required to submit an annual tax return

Costs in Set up and Maintenance of an International Business Company

The fees for the registration and set-up of a Cyprus International Business Company including all necessary company Certificates, Memorandum and Articles of Association etc. depends on many factors such as the capital of the IBC. A fee of 0,6% on the amount of the nominal value of the authorised share capital is payable to the Registrar.

Other costs such as accounting, audit etc. are time based and a quote is provided in advance. Furthermore, other services (e.g. obtaining of tax identification number, tax domicile certificates, VAT Services etc.) are also available upon request.

Disclaimer

The information contained in this web site has been prepared by KPSA for informational purposes only and is not an audit, accounting or tax advice. It is provided only as general information which may or may not reflect the most current legal developments. Consequently, the information should not be construed as legal, accounting, tax, investment or other professional advice or services. Each visitor is urged to consult one of our partners who understands the particular factual situation before making any decision, and KPSA disclaims any responsibility for any action taken by visitors in their specific cases or for any misinterpretation on the part of such persons. KPSA maintains this site in Nicosia, Cyprus and makes no representation that this site or any content on or accessed through the site are appropriate or available for use in other jurisdictions. You are responsible for compliance with all applicable laws and regulations.

Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Table -  4 Column
Source
in Millions
Cyprus tax resident
Companies
per Sq KM
Cyprus tax resident and
domiciled individuals
in Million of $
Cyprus tax resident but
non-domiciled individuals
in Million of $
Dividends from Cyprus tax resident companies
0% 

17% if received after the lapse of 4 years fromthe end of the year in which the profits were distributed
17%
0%
Dividends from non-Cyprus tax resident companies
0% 

However, 0% andnot 17% is applicable when:
a) more than 50% of the foreignpaying company’s activities result directly or indirectly in investment income,and
b) theforeign tax is significantly lower than the tax burden in Cyprus, i.e. lessthan 6,25%
17%
0%
Interest income arising from the ordinary activities or closely connected with theordinary activities of the business
0% but subject to corporation  tax
0% but subject to personal tax
0% but subject to personal tax
Other interest income
30%
30% (subject to conditions)
0%
Rental income less 25%
3%
3%
0%
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
servicescyprus tax planningCompany facts, Information and Requirements

Cyprus has been a member of the United Nations since its independence in 1960 and as from May 2004, it is also a full member of the European Union.

International Business Company

  • Type of Company- Limited Liability Company
  • Taxation - The corporate taxation rate is 12,5% of the net profit
  • Legislation - The Cyprus Company Law, Cap.113, based on the English Company Act of 1948
  • Ready-made companies are available
  • Money laundering legislation is in existence
  • Approval of the name for custom - made company can be obtained within 3-5 working days from the Registrar of Companies (here in after the “Registrar”)
  • After the approval of the name, incorporation of the custom - made company can be made within 2-3 working days
  • Documentation is received immediately after the incorporation
  • Certain words cannot be used within the company name for IBC's such as Securities, International, Royal etc.
  • Permission is required to use names such as Bank, Trust, Insurance etc.
  • Limited or Ltd must appear at the end of the company name
  • A registered office is required
  • Documents are to be maintained in the registered office
  • Bearer shares are not allowed
  • The minimum number of shareholders is 1 and the maximum is 50 shareholders
  • A Cyprus private company must have at least one director whereas a public company must have at least two
  • No residential, nationality or professional qualifications are required for the directors. Both physical and legal persons can be directors of a Cyprus company.
  • The general meeting must take place atthe registered office
  • There are no minimum legal requirements as to the minimum or maximum share capital of a Cyprus private limited liability company. However, for practical purposes, it is recommended that companies be incorporated with a minimum share capital of €1.000 divided into1.000 shares of €1 each. A public limited liability company (PLC) must have share capital of not less than €25.630. A public company must have at least seven shareholders.
  • The minimum number of directors is 1 provided that he/she is not also the company secretary
  • The company can act through a power of attorney granted by the Board of Directors (specific only)
  • A company secretary is required
  • Statutory accounting is required
  • Annual audited financial statements are required by are sident qualified auditor, licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC)
  • Annual audited financial statements must be filed at the Registrar of Cyprus Companies
  • Tax resident companies are required to submit an annual tax return

Costs in Set up and Maintenance of an International Business Company

The fees for the registration and set-up of a Cyprus International Business Company including all necessary company Certificates, Memorandum and Articles of Association etc. depends on many factors such as the capital of the IBC. A fee of 0,6% on the amount of the nominal value of the authorised share capital is payable to the Registrar.

Other costs such as accounting, audit etc. are time based and a quote is provided in advance. Furthermore, other services (e.g. obtaining of tax identification number, tax domicile certificates, VAT Services etc.) are also available upon request.

Disclaimer

The information contained in this web site has been prepared by KPSA for informational purposes only and is not an audit, accounting or tax advice. It is provided only as general information which may or may not reflect the most current legal developments. Consequently, the information should not be construed as legal, accounting, tax, investment or other professional advice or services. Each visitor is urged to consult one of our partners who understands the particular factual situation before making any decision, and KPSA disclaims any responsibility for any action taken by visitors in their specific cases or for any misinterpretation on the part of such persons. KPSA maintains this site in Nicosia, Cyprus and makes no representation that this site or any content on or accessed through the site are appropriate or available for use in other jurisdictions. You are responsible for compliance with all applicable laws and regulations.

Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Personal Income Tax Rates
Taxable Income €
in Millions
Tax rate %
per Sq KM
Amount of tax €
in Million of $
Cumulative amount of tax €
in Million of $
0 – 19.500
0
0
0
19.501 – 28.000
20
1.700
1.700
28.001 – 36.300
25
2.075
3.775
36.301 – 60.000
30
7.110
10.885
60.001 and over
35
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
servicescyprus tax planningCompany facts, Information and Requirements

Cyprus has been a member of the United Nations since its independence in 1960 and as from May 2004, it is also a full member of the European Union.

International Business Company

  • Type of Company- Limited Liability Company
  • Taxation - The corporate taxation rate is 12,5% of the net profit
  • Legislation - The Cyprus Company Law, Cap.113, based on the English Company Act of 1948
  • Ready-made companies are available
  • Money laundering legislation is in existence
  • Approval of the name for custom - made company can be obtained within 3-5 working days from the Registrar of Companies (here in after the “Registrar”)
  • After the approval of the name, incorporation of the custom - made company can be made within 2-3 working days
  • Documentation is received immediately after the incorporation
  • Certain words cannot be used within the company name for IBC's such as Securities, International, Royal etc.
  • Permission is required to use names such as Bank, Trust, Insurance etc.
  • Limited or Ltd must appear at the end of the company name
  • A registered office is required
  • Documents are to be maintained in the registered office
  • Bearer shares are not allowed
  • The minimum number of shareholders is 1 and the maximum is 50 shareholders
  • A Cyprus private company must have at least one director whereas a public company must have at least two
  • No residential, nationality or professional qualifications are required for the directors. Both physical and legal persons can be directors of a Cyprus company.
  • The general meeting must take place atthe registered office
  • There are no minimum legal requirements as to the minimum or maximum share capital of a Cyprus private limited liability company. However, for practical purposes, it is recommended that companies be incorporated with a minimum share capital of €1.000 divided into1.000 shares of €1 each. A public limited liability company (PLC) must have share capital of not less than €25.630. A public company must have at least seven shareholders.
  • The minimum number of directors is 1 provided that he/she is not also the company secretary
  • The company can act through a power of attorney granted by the Board of Directors (specific only)
  • A company secretary is required
  • Statutory accounting is required
  • Annual audited financial statements are required by are sident qualified auditor, licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC)
  • Annual audited financial statements must be filed at the Registrar of Cyprus Companies
  • Tax resident companies are required to submit an annual tax return

Costs in Set up and Maintenance of an International Business Company

The fees for the registration and set-up of a Cyprus International Business Company including all necessary company Certificates, Memorandum and Articles of Association etc. depends on many factors such as the capital of the IBC. A fee of 0,6% on the amount of the nominal value of the authorised share capital is payable to the Registrar.

Other costs such as accounting, audit etc. are time based and a quote is provided in advance. Furthermore, other services (e.g. obtaining of tax identification number, tax domicile certificates, VAT Services etc.) are also available upon request.

Disclaimer

The information contained in this web site has been prepared by KPSA for informational purposes only and is not an audit, accounting or tax advice. It is provided only as general information which may or may not reflect the most current legal developments. Consequently, the information should not be construed as legal, accounting, tax, investment or other professional advice or services. Each visitor is urged to consult one of our partners who understands the particular factual situation before making any decision, and KPSA disclaims any responsibility for any action taken by visitors in their specific cases or for any misinterpretation on the part of such persons. KPSA maintains this site in Nicosia, Cyprus and makes no representation that this site or any content on or accessed through the site are appropriate or available for use in other jurisdictions. You are responsible for compliance with all applicable laws and regulations.

Table - 3 Column Wide
Contributors
Contribution percentage
01/03/2019– 28/02/2020
in Millions
Contribution percentage
from 01/03/2020
per Sq KM
Employees
1,70%
2,65%
Employers*
1,85%
2,90%
State
1,65%
4,70%
Self-Employed
2,55%
4%
Pensioners
1,70%
2,65%
Income earners (interest, rent, dividends etc.)
1,70%
2,65%
Officials
1,70%
2,65%
*Including the State as Employer
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Personal Income Tax Rates
Taxable Income €
in Millions
Tax rate %
per Sq KM
Amount of tax €
in Million of $
Cumulative amount of tax €
in Million of $
0 – 19.500
0
0
0
19.501 – 28.000
20
1.700
1.700
28.001 – 36.300
25
2.075
3.775
36.301 – 60.000
30
7.110
10.885
60.001 and over
35
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
servicescyprus tax planningCompany facts, Information and Requirements

Cyprus has been a member of the United Nations since its independence in 1960 and as from May 2004, it is also a full member of the European Union.

International Business Company

  • Type of Company- Limited Liability Company
  • Taxation - The corporate taxation rate is 12,5% of the net profit
  • Legislation - The Cyprus Company Law, Cap.113, based on the English Company Act of 1948
  • Ready-made companies are available
  • Money laundering legislation is in existence
  • Approval of the name for custom - made company can be obtained within 3-5 working days from the Registrar of Companies (here in after the “Registrar”)
  • After the approval of the name, incorporation of the custom - made company can be made within 2-3 working days
  • Documentation is received immediately after the incorporation
  • Certain words cannot be used within the company name for IBC's such as Securities, International, Royal etc.
  • Permission is required to use names such as Bank, Trust, Insurance etc.
  • Limited or Ltd must appear at the end of the company name
  • A registered office is required
  • Documents are to be maintained in the registered office
  • Bearer shares are not allowed
  • The minimum number of shareholders is 1 and the maximum is 50 shareholders
  • A Cyprus private company must have at least one director whereas a public company must have at least two
  • No residential, nationality or professional qualifications are required for the directors. Both physical and legal persons can be directors of a Cyprus company.
  • The general meeting must take place atthe registered office
  • There are no minimum legal requirements as to the minimum or maximum share capital of a Cyprus private limited liability company. However, for practical purposes, it is recommended that companies be incorporated with a minimum share capital of €1.000 divided into1.000 shares of €1 each. A public limited liability company (PLC) must have share capital of not less than €25.630. A public company must have at least seven shareholders.
  • The minimum number of directors is 1 provided that he/she is not also the company secretary
  • The company can act through a power of attorney granted by the Board of Directors (specific only)
  • A company secretary is required
  • Statutory accounting is required
  • Annual audited financial statements are required by are sident qualified auditor, licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC)
  • Annual audited financial statements must be filed at the Registrar of Cyprus Companies
  • Tax resident companies are required to submit an annual tax return

Costs in Set up and Maintenance of an International Business Company

The fees for the registration and set-up of a Cyprus International Business Company including all necessary company Certificates, Memorandum and Articles of Association etc. depends on many factors such as the capital of the IBC. A fee of 0,6% on the amount of the nominal value of the authorised share capital is payable to the Registrar.

Other costs such as accounting, audit etc. are time based and a quote is provided in advance. Furthermore, other services (e.g. obtaining of tax identification number, tax domicile certificates, VAT Services etc.) are also available upon request.

Disclaimer

The information contained in this web site has been prepared by KPSA for informational purposes only and is not an audit, accounting or tax advice. It is provided only as general information which may or may not reflect the most current legal developments. Consequently, the information should not be construed as legal, accounting, tax, investment or other professional advice or services. Each visitor is urged to consult one of our partners who understands the particular factual situation before making any decision, and KPSA disclaims any responsibility for any action taken by visitors in their specific cases or for any misinterpretation on the part of such persons. KPSA maintains this site in Nicosia, Cyprus and makes no representation that this site or any content on or accessed through the site are appropriate or available for use in other jurisdictions. You are responsible for compliance with all applicable laws and regulations.

Table - 3 Column Wide
Contributors
Contribution percentage
01/03/2019– 28/02/2020
in Millions
Contribution percentage
from 01/03/2020
per Sq KM
Employees
1,70%
2,65%
Employers*
1,85%
2,90%
State
1,65%
4,70%
Self-Employed
2,55%
4%
Pensioners
1,70%
2,65%
Income earners (interest, rent, dividends etc.)
1,70%
2,65%
Officials
1,70%
2,65%
*Including the State as Employer
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Personal Income Tax Rates
Fund
in Millions
Employer %
per Sq KM
Employee %
in Million of $
Self-employed %
in Million of $
Social Insurance
8,3
8,3
-
Social cohesion
2
-
-
Redundancy
1,2
-
-
Industrial Training
0,5
-
-
Holiday (exemptions apply)
8
-
-
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
servicescyprus tax planningCompany facts, Information and Requirements

Cyprus has been a member of the United Nations since its independence in 1960 and as from May 2004, it is also a full member of the European Union.

International Business Company

  • Type of Company- Limited Liability Company
  • Taxation - The corporate taxation rate is 12,5% of the net profit
  • Legislation - The Cyprus Company Law, Cap.113, based on the English Company Act of 1948
  • Ready-made companies are available
  • Money laundering legislation is in existence
  • Approval of the name for custom - made company can be obtained within 3-5 working days from the Registrar of Companies (here in after the “Registrar”)
  • After the approval of the name, incorporation of the custom - made company can be made within 2-3 working days
  • Documentation is received immediately after the incorporation
  • Certain words cannot be used within the company name for IBC's such as Securities, International, Royal etc.
  • Permission is required to use names such as Bank, Trust, Insurance etc.
  • Limited or Ltd must appear at the end of the company name
  • A registered office is required
  • Documents are to be maintained in the registered office
  • Bearer shares are not allowed
  • The minimum number of shareholders is 1 and the maximum is 50 shareholders
  • A Cyprus private company must have at least one director whereas a public company must have at least two
  • No residential, nationality or professional qualifications are required for the directors. Both physical and legal persons can be directors of a Cyprus company.
  • The general meeting must take place atthe registered office
  • There are no minimum legal requirements as to the minimum or maximum share capital of a Cyprus private limited liability company. However, for practical purposes, it is recommended that companies be incorporated with a minimum share capital of €1.000 divided into1.000 shares of €1 each. A public limited liability company (PLC) must have share capital of not less than €25.630. A public company must have at least seven shareholders.
  • The minimum number of directors is 1 provided that he/she is not also the company secretary
  • The company can act through a power of attorney granted by the Board of Directors (specific only)
  • A company secretary is required
  • Statutory accounting is required
  • Annual audited financial statements are required by are sident qualified auditor, licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC)
  • Annual audited financial statements must be filed at the Registrar of Cyprus Companies
  • Tax resident companies are required to submit an annual tax return

Costs in Set up and Maintenance of an International Business Company

The fees for the registration and set-up of a Cyprus International Business Company including all necessary company Certificates, Memorandum and Articles of Association etc. depends on many factors such as the capital of the IBC. A fee of 0,6% on the amount of the nominal value of the authorised share capital is payable to the Registrar.

Other costs such as accounting, audit etc. are time based and a quote is provided in advance. Furthermore, other services (e.g. obtaining of tax identification number, tax domicile certificates, VAT Services etc.) are also available upon request.

Disclaimer

The information contained in this web site has been prepared by KPSA for informational purposes only and is not an audit, accounting or tax advice. It is provided only as general information which may or may not reflect the most current legal developments. Consequently, the information should not be construed as legal, accounting, tax, investment or other professional advice or services. Each visitor is urged to consult one of our partners who understands the particular factual situation before making any decision, and KPSA disclaims any responsibility for any action taken by visitors in their specific cases or for any misinterpretation on the part of such persons. KPSA maintains this site in Nicosia, Cyprus and makes no representation that this site or any content on or accessed through the site are appropriate or available for use in other jurisdictions. You are responsible for compliance with all applicable laws and regulations.

Table - 3 Column Wide
Contributors
Contribution percentage
01/03/2019– 28/02/2020
in Millions
Contribution percentage
from 01/03/2020
per Sq KM
Employees
1,70%
2,65%
Employers*
1,85%
2,90%
State
1,65%
4,70%
Self-Employed
2,55%
4%
Pensioners
1,70%
2,65%
Income earners (interest, rent, dividends etc.)
1,70%
2,65%
Officials
1,70%
2,65%
*Including the State as Employer
Table - 2 Column Wide
Annual wear and tear allowances on assets
Rate %
in Millions
Plant and machinery
10
Furniture and fittings
10
Industrial carpets
10
Machinery and tools used  in an agricultural business
15
Vehicles and Means of Transportation*
Commercial motor vehicles
20
Motor cycles
20
Excavators, tractors,  bulldozers, self-propelled loaders and drums for petrol companies
25
Armoured cars (e.g. used by Security Services)
20
Specialised machinery for the laying of railroads
20
New airplanes
8
New helicopters
8
Sailing vessels
4,5
Motor Yachts
6
Steamships, tug-boats and  fishing boats
6
Ship launching  machinery  
12,5
New cargo vessels
8
New passenger vessels
6
Used cargo/passenger  vessels
Over their UEL
* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).
Other
Televisions and videos
10
Computer hardware and  operating systems
20
Application software
33 1/3
Application software for less than €1.709 is written off in the year of acquisition
Wind Power Generators
10
Photovoltaic Systems
10
Tools in general
33 1/3
Videotapes property of  video clubs
50
Buildings*
Commercial buildings
3
Industrial, agricultural  and hotel buildings
4
Flats
3
Metallic greenhouse  structures
10
Wooden greenhouse  structures
33 1/3
* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.
Personal Income Tax Rates
Fund
in Millions
Employer %
per Sq KM
Employee %
in Million of $
Self-employed %
in Million of $
Social Insurance
8,3
8,3
-
Social cohesion
2
-
-
Redundancy
1,2
-
-
Industrial Training
0,5
-
-
Holiday (exemptions apply)
8
-
-
Individuals can deductfrom the capital gain the following:
Annual wear and tear allowances on assets
Rate %
in Millions
Disposal of private residence (subject to certain  conditions)
€85.430
Disposal of agricultural land by a farmer
€25.629
Any other disposal of immovable property
€17.086
Table -  4 Column
Market value €
in Millions
Rate %
per Sq KM
Fees €
in Million of $
Accumulated fees €
in Million of $
Up to 85.000
3
2.550
2.550
85.000 – 170.000
5
4.250
6.800
Above 170.000
8
Audit and assurance
Cyprus tax planning
Consulting
International tax planning
Explore Cyprus Tax Planning
Cyprus tax regimeCompany facts, info + requirementsPersonal income taxGeneral healthcare systemSocial insuranceImmigration/Relocation Services

Contact

info@kpsa.com.cy+357 22 445500

Office

15 Themistokli Dervi Street,
1st floor, 1066 Nicosia, CyprusPostal Address
P.O. Box 27040
1641 Nicosia, Cyprus

Menu

About usServicesMeet our peopleOur approachContact usPrivacy and Cookie Policy