Cyprus: Tax Treaties

The governments of the Hong Kong Special Administrative Region (HKSAR) and the Republic of Cyprus announced the signing of a comprehensive double taxation agreement (DTA) on 12 June aimed at eliminating double taxation on income and combating tax evasion and tax avoidance.

Cyprus has completed the technical requirements for Schengen accession, but political approval remains pending. What would membership mean for residence permits, visa issuance, and cross-border mobility—and what common misconceptions about tax residency need to be addressed before businesses and individuals plan their next move?

A Cyprus holding company is one of the most powerful tools available to founders, investors and group owners who want to move profits, reinvest and plan exits without losing value through unnecessary tax leakage and withholding taxes.

Cyprus offers consultants a 15% corporate tax rate combined with near-zero dividend taxation for non-domiciled residents. Understanding how to structure expenses, extract profit through salary versus dividends, and establish genuine substance determines what a consultant actually keeps after tax.

Many founders compare Cyprus and Bulgaria solely on corporate tax rates, but the real decision involves tax residency rules, treaty networks, dividend treatment, and legal structures. This analysis examines how these factors affect international businesses beyond the headline 10% versus 15% comparison.

Poland's tax system imposes mandatory costs and contribution burdens that compound over time, with an exit tax that becomes more expensive the longer entrepreneurs wait to act. For those who have built valuable businesses, Cyprus offers a compelling alternative with 0% tax on dividends for Non-Dom residents, 15% corporate tax, and a straightforward EU relocation process that includes English-speaking professionals and 300 days of sunshine.

Cyprus is refining its corporate tax system to align with international standards while maintaining its appeal to global investors. Among the upcoming adjustments...

In April 2025, Cyprus enacted a set of important amendments to its tax legislation through the Income Tax (Amending) Law L.47(I)/2025, the Special Defence Contribution (Amending) Law L.48(I)/2025, and the Collection of Taxes (Amending) Law L.49(I)/2025.

Cyprus is well known for its weather and location, but behind the lifestyle lies a sophisticated, business-friendly infrastructure.