Cyprus has made it very attractive for digital nomads or simply individual business with a favorable tax system ofr corporate and individuals, while having a startup-friendly 60-day rule setup, which means that individuals spending at least 60 days a year in Cyprus, under certain conditions, is considered a Cypriot tax residence.
In other word a perfect way to establish your startup.
The standard corporate tax rate is 12.5%, one of the lowest levels in the EU.
Facts
- Tech companies producing Intellectual Property (IP) can apply for an 80% tax exemption, reducing the corporate tax rate to an effective 2.5%. Tax rates for individuals are among the lowest in the European Union.
- No income tax is required on the first €19,500 of personal income.
- Non-domiciled tax residents do not pay tax on dividends, interest or rental income earned abroad.
- Investments in innovative small businesses can be deducted from taxable income, up to an annual limit of €150,000.
- Dividend payments are exempt from taxation, enabling most tech entrepreneurs to minimize their overall tax burden.
A correct setup is important, and it can be done in a certain way that supports the modern digital lifestyle.
We know the procedure and have expert partners on the side, so that you can focus on your business.
