Capital gains tax exemption
Full exemption from capital gains tax for sale of property (land/buildings) to an independent party provided that:
- The property has been bought until 31/12/2016
- The property is acquired by purchase (excludes donations/gifts/exchanges)
Transfer fees exemption
- A 50% exemption from transfer fees applicable to all transfer applications effected until 31/12/2016
No thin capitalisation rules
- There are no limitations on financing schemes in terms of debt to equity requirements
Capital gains on sale of securities: 100% exemption
- The definition of securities includes shares, bonds, debentures as well as other options on titles
No withholding tax on outward payments (dividends, interest, royalties)
- If the shareholder is other Cy company then there is no withholding tax even on sale
- This can be utilised by the creation of double tier CY company structure of properties
Tax free corporate re-domiciliation permitted
- This allows the moving of the seat of incorporation into Cyprus as well as away from Cyprus as necessary without any tax burden