How dividends are taxed in Cyprus

How dividends are taxed in Cyprusevangelouloizou2022-04-13T19:00:03+03:00

How dividends are taxed in Cyprus

Dividend income is only taxed with Special Contribution for Defense at the rate of 17%

The persons that are subject to Special Contribution for Defense are:

Cyprus tax resident companies, and
Individuals who are tax resident and domiciled in Cyprus

Therefore, if you are the owner of a Cyprus Company and you are not a Cyprus Tax resident or you fall under the category of non-domiciled individuals then you are not liable to any tax on the dividends you receive from your Cyprus company.

You might be liable to tax on dividend income in your home country.

Part of

Set up a limited company: step by step

What other options do you have

The incorporation and structure of your investment defines the early stages of your business endeavor and impacts your future success.

How you set up your business depends on what sort of work you do. It can also affect the way you pay tax and subsequently the profitability of your business.

Consider if one of the following options is more suitable to you instead:

The memorandum and articles of association

Check what records you'll need to keep

Check the company and accounting records you must keep

Register your company

You'll need to register an official address for your company.

Specify the registered address of your company

You'll also need to register with the Tax Authorities immediately after the registration of the Cyprus Company.

Registration with the Tax authorities and Social Insurance Services