Does Cyprus have withholding tax?
Ava Robinson
Published Mar 22, 2026
Withholding Tax on dividends, interest and royalties. Cyprus does not levy a WHT on dividends, interest and royalties paid to non-residents of Cyprus except in the case of royalties earned on rights used within Cyprus, which are subject to a WHT of 10% (5% in the case of cinematographic films).
What is the corporation tax in Cyprus?
The Cyprus tax regime is one of the most attractive in Europe for individuals, investors and businesses. It offers one of the lowest corporate tax rates (12.5%) and the country can boast of a network of more than 60 double taxation agreements.
Is investment income taxable in Cyprus?
Dividends received from other Cyprus tax resident companies are exempt from all taxes, subject to certain anti-avoidance provisions. Dividends earned from foreign investments are exempt from CIT in Cyprus, with the exception of dividends that are deductible for tax purposes for the paying company.
What is the tax rate in Cyprus?
Taxation
| Annual income | Tax rate |
|---|---|
| In between €19500 and €28000 | 20% |
| In between €28000 and €36300 | 25% |
| In between €36300 and €60000 | 30% |
| In excess of €60000 | 35% |
Who pays Cyprus tax?
Taxes in Cyprus are levied by both the central and local governments. Tax revenue stood at 39.2% of GDP in 2012. The most important revenue sources are the income tax, social security, value-added tax and corporate tax, and are all collected by the central government.
How much is capital gains tax in Cyprus?
Capital Gains Tax (CGT) is imposed at the rate of 20% on: The gains from the disposal of immovable property situated in Cyprus. The gains from the disposal of shares in companies which own immovable property in Cyprus and that are not listed in any recognized Stock Exchange.
Personal Tax rates.
| Taxable Income | Rate | Amount |
|---|---|---|
| Taxable Income €19.501 – €28.000 | Rate 20% | Amount €1.700 |
| Taxable Income €28.001 – €36.300 | Rate 25% | Amount €2.075 |
| Taxable Income €36.301 – €60.000 | Rate 30% | Amount €7.110 |
| Taxable Income €60.000 – €100.000 | Rate 35% | Amount €14.000 |
What is tax rate in Cyprus?
Can a company be a tax resident of Cyprus?
A company is tax resident of Cyprus if it is managed and controlled in Cyprus. Additionally, in accordance with the Cyprus Government Budget for 2021, as from 2021 a Cyprus incorporated company will by default be considered a tax resident of Cyprus, subject to the relevant law being enacted.
How much tax do you pay on technical services in Cyprus?
Cyprus levies a 10% WHT on technical services performed by non-residents in Cyprus. No such WHT is levied if such services are performed via a PE in Cyprus or between ‘associated’ companies as defined by the EU Interest and Royalty Directive as enacted into the Cyprus tax legislation.
What’s the tax rate on a foreign pension in Cyprus?
4 Tax Facts & Figures 2021 – Cyprus Foreign pension income is taxed at the flat rate of 5% on amounts over €3.420. The taxpayer can however on an annual basis elect to be taxed at the normal tax rates and bands set out above. Cyprus source widow(er)’s pension is taxed at the flat rate of 20% on amounts over €19.500.
Do you pay tax on dividends in Cyprus?
Cyprus does not levy a WHT on dividends, interests, and royalties paid to non-residents of Cyprus except in the case of royalties earned on rights used within Cyprus, which are subject to WHT of 10% (5% in the case of cinematograph films).
