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%