The Cyprus House of Parliament announced a series of new tax aiming to enhance Cyprus’ economy and attract foreign investment.
According to the newly passed incentives, the following will be applied:
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Business activities in relation to the exploitation of natural resources within the territorial waters of the Republic of Cyprus will be taxed with a special income tax in order for the new energy industry to be exploited better
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Rents paid to the local authorities will be subject to income tax for an equal business treatment
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Discount will be given to Cyprus based companies dealing with foreign companies that have increased their profits
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By 2020 phase out the exemption of 20% on income salary to persons not being residents of Cyprus prior to the beginning of their employment
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Extension from 5 to 10 years of the exemption concession period of 50% of their pay for personals receiving salaries above €100,000 and are not Cyprus residents. In terms of profits from currency exchange rates, they are exempt with the sole exception of gains from trade exchange
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Profits from the sale of share of companies that own real estate in Cyprus will be considered as a commercial activity and will be subject to capital gains tax
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A company’s shares will be calculated on the basis of the property owned by the company or other companies directly or indirectly involved. Consequently the sale price will be calculated based on the market value of the property at the date of its provision, and will be evaluated by the Tax Inspector.
More information:
Do you want to establish a company in Cyprus? Our
Cyprus company formation page explains it all.
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Eurobank Cyprus bank account opening.