Cyprus Just Raised Taxes to 15% for ALL Companies

Cyprus announced a tax reform on February 26th and in this video I'm breaking down the most important changes.

The biggest change is probably the increase of the corporate tax from 12.5% to 15% for all companies.

This comes quite unexpected as the 15% corporate tax was previously only affecting large corporations exceeding 750M in annual turnover. However, now every company, regardless of the turnover will be liable to an increased corporate tax of 15%, instead of the previous 12.5%.

IMPORTANT: For now, this was just a proposal from the government and we are waiting for approval from the parliament, but it will most likely pass and go in effect soon.

Tax.One helped over 300 people relocate to low tax jurisdictions like Cyprus and Dubai, incorporate companies, buy properties and obtain Citizenship and we would be happy to advise you as well.

Thanks for watching. If there are any questions that you may have, you can leave a comment or contact us directly.

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The content of this channel is intended solely for informational purposes and does not constitute legal, tax, investment, or any form of professional advice.

[frevebe]

Even with the changes, taxes still are honest compared to most other countries.

[hyperpedro]

Still a good deal at 15% compared to other European countries, and you save on banking fees by staying in the eurozone. As long as the non dom solution with the 60 days rule stays, it is still a very solid option. I like the idea you are not stucked 6 months in a year there.

[rytisluko]

As I want to come from Germany to Cyprus it's still close to 50% of pure profit increase for me anyway :D

[joristube]

But your new scheme at 11:00 wouldn't work because of management and control rules... Tell us about Cyprus International Trust please

[Mozz]

You mention the 60 days rule but from what I understand, you need to have a permanent place, i.e. you have to buy or rent a place for the whole year. So that means you stay for example 60 or 90 days in Cyprus, and pay for nothing the rest of the year if you travel? Am I missing something?

[cyause]

Cyprus has not changed its corporation tax to 15% yet. It is a suggestion covered within the various tax reforms this government intends to make sometime in 2025 or 2026. Therefore, nothing has changed yet, Corporation Tax is still 12.5%, 0% dividend tax for non doms and business as usual!

[Nightwolf]

Cyprus citizenship give access to all Schengen areas ?

[azm.]

still one of the best quality for life to taxes ratio

[stefancasenco]

Does this also apply for Cyprus International Trusts? If I have an online business billing US clients from Cyprus (income generated outside of Cyprus) is it taxed at 15% profit tax?

[Julieur]

It's interesting. Cyprus is nice but Bulgaria is better in regard to taxes, bank accounts, infrastructure and prices. My living costs are half the price of Cyprus. 🌴 But you have better weather.

[SprachUnterricht]

Can you please make a video about taxes for freelancers?

[druvaciam]

How can I get Cyprus residency? Is it possible for non EU citizens?

[arism]

Cyprus didnt raise its corporate income tax rate yet. this is a proposal at this stage

[jlievbr]

It's an additional 2.5% which is immaterial, show me one person who will cry over additional EUR 2500 for a profit of EUR 100, 000, 15% is still great. It also means Cyprus feels strong enough to get more tax from companies, which means the economy is growing which is a good sign for the future. I also think that the reform is just optimization of the tax system as it increases here but decreases there.

[simonr]

I think this move makes it more interesting to stay in Cyprus after the 17 years are over. Now the only difference will be paying 5 % more as "dom" instead of 17%. That's actually a big benefit for those wanting to stay long term

[andrewchr]

Still cheaper than most EU countries but lets face it. Cyprus took a lot of heat from major EU countries on the lower tax rate for years now. I still remember how it was only 10, 5%.

[BigMike]

If you open an active company elsewhere with 0% tax, wouldn't CFC rules in Cyprus apply if you are tax resident there?

[borisschwartz]

not sure I understand whether Cyprus IP Box Regime still makes an effective tax rate can be as low as 2.5%?

[African_snowking]

When are you back in Cyprus my friend. Ive recently over. Need advice with opening company etc

[pakx]

Capital gains in company level still exempt?