All companies tax resident in Cyprus are taxed on their income accrued or derived from all sources in Cyprus and abroad (i.e. on their worldwide income). A non Cyprus tax resident company is taxed on income accrued or derived from a business activity which is carried out through a permanent establishment in Cyprus and on certain income arising from sources in Cyprus.

All Cyprus tax residents are taxed on all income accrued or derived from all sources in Cyprus and abroad. Individuals who are not tax residents of Cyprus are taxed on income accrued or derived from sources in Cyprus.

Capital Gains Tax is imposed at the rate of 20% on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which own such immovable property, excluding shares listed in any recognised stock exchange.
 

All residents of the Republic are subject to Special Defence Contribution (SDC) on the sources of income indicated below. Non residents are not subject to SDC.

VAT is imposed on the provision of goods and services in Cyprus, as well as on the acquisition of goods from the EU and the importation of goods into Cyprus.
 

Tax credit for foreign tax paid

Any withholding tax suffered abroad on income which is subject to tax in Cyprus will be credited against Cypriot tax payable on such income irrespective of the existence of a double taxation treaty.

Immovable Property Tax is imposed on the market value as at 1 January 1980 and applies to immovable property owned by the taxpayer on 1 January of each year. This tax is payable on 30 September each year.

Stamp duty is payable on all agreements and documents which involve property situated in Cyprus as well as matters or issues which take place in Cyprus.

Capital contribution is subject to capital duty under Cyprus` legislation on the authorised share capital and any further increases.