The rate of Capital Gains Tax is 20% on profits obtained from the sale of immovable property situated in Cyprus, after providing for an increase indexation payment. The capital gains that are obtained from the sale of immovable property situated in a foreign country are exempt from capital gains tax.
Companies’ taxation also depends on their residential status. A company is considered to be a Tax Resident if it’s managed and control in Cyprus. While the tax law doesn’t give a definition about managed and control, it’s generally accepted that it’s the place where board of decisions are taken and where the directors reside.
In simple terms, a trust is an arrangement whereby a settlor, transfers property to a trustee, who is an independent person with no benefit from the trust, to hold for such time as the trust shall prescribe (could be for an indefinite period) for the benefit of a beneficiary.
Value Added Tax is an indirect tax which is imposed on goods and services at each stage of production, starting from raw materials to final product. VAT is levied on the value additions at different stages of production. Vat applies to a supply of goods or services, to intra – E.U. acquisitions of goods from fiscal warehousing arrangements and to importation of goods.
A “non-domicile” (non-dom) individual, with tax exemptions over dividends and interest earned by qualifying as “non-doms”. With this amendment, individuals who have non-dom status are no longer subject to Special Defence contribution (SDC) noting, as well, that the new law creates an attractive tax environment for non-doms residing in Cyprus.