Cyprus has one of the most competitive corporate tax regimes in the EU. 12.5 % flat corporate income tax (vs. EU average 21 %), NID (Notional Interest Deduction) on new equity capital, full exemption on dividends from foreign subsidiaries, exemption on capital gains from sale of securities. Our platform implements multi-layer tax calculation: starts from 12.5 %, applies NID, applies IP Box where qualifying, applies losses carried forward.
You inject €500k equity to fund a SaaS expansion — what tax benefit do you get?
NID at 10-year government bond yield + 3% (currently ~5-6%) applied to new equity. Deductible from taxable profit. €500k equity → ~€27.5k annual deduction → ~€3.4k tax saving annually.
You acquire a Cypriot subsidiary and receive €100k annual dividends from it.
Dividends from Cyprus subsidiaries: 100% participation exemption. Dividends from foreign subsidiaries (with active business or <50% passive income): 100% exemption. No withholding on dividends paid out of Cyprus.
You sell shares of your operating company for €2M gain.
Capital gains from sale of "securities" (shares, bonds, options) are 100% exempt from Cypriot tax, regardless of holding period. Only real estate capital gains (Cyprus-located) are taxed (20%).
You had losses in 2024 (-€80k) and profits in 2025 (€200k) — how do they offset?
Tax losses carry forward 5 years (no limit on amount). The platform automatically applies the loss against the next 5 years' profits, calculating effective tax on the net.
The 4b2b ecosystem is designed so R&D expenses and IP-derived revenue are tracked in a separate ledger for IP Box deduction.
