Taxation on Investment Funds in Cyprus

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On January 22, 2015, Posted by , In Funds, By , , With Comments Off on Taxation on Investment Funds in Cyprus

Taxation on Investment Funds in Cyprus

UCITS and ICIS and soon AIF’s are taxed as any other company in Cyprus.

The main tax advantages of the Cyprus Funds are:

  • No capital gains on disposal of securities.
  • Interest received is taxed at the corporate tax rate of 10%.
  • There is no tax on dividends received from local companies or international companies
  • Absence of withholding taxes on dividend payments from Cyprus to non residents
  • No thin capitalisation rules
  • Favorable network of tax treaties with some 40 countries
  • Lowest corporate tax rate in the EU (10%)
  • Reduced deemed dividend distribution tax to Cyprus Resident investors to 3% from 15%

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