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