Cyprus is a competitive jurisdiction for the incorporation of companies and frequently is used with other countries for international tax planning. Benefits of forming a Cyprus company are the following: the lowest rate of corporate taxation in Europe, an extensive Double Tax Treaty network, and favourable tax provisions which elevate Cyprus as a prime holding company jurisdiction. The below table outlines why Cyprus is among the best favourable Taxable countries in the EU. We have collected the 3 major types of taxation from all European countries.

Country Company Tax Highest Tax scale for                                           Physical Persons VAT
  • Austria
25,00% 50,00% 20,00%
  • Moldova
24,00% 30,00% 18,00%
33.99% 50,00% 21,00%
  • Bosnia
10,00% 20,00% 17,00%
  • Bulgaria
10,00% 15,00% 20,00%
  • Croatia
20,00% 45,00% 23,00%
  • Cyprus
10,00% 35,00% 15,00%
  • Czech Republic
21,00% 15,00% 20,00%
  • Denmark
25,00% 51,5% 25,00%
  • Estonia
0,00% 21,00% 20,00%
  • Finland
26,00% 53,00% 23,00%
  • France
33,33% 41,00% 19,6%
  • Germany
30,00% 45,00% 19,00%
  • Georgia
20,00% 12,00% 18,00%
  • Greece
20,00% 45,00% 23,00%
  • Hungary
10,00% 16,00% 25,00%
  • Greenland
18,00% 46,28% 25,50%
  • Iceland
12.50% 41,00% 21,00%
  • Italy
31.4% 45,00% 20,00%
  • Latvia
15,00% 23,00% 22,00%
  • Lithuania
20,00% 21,00% 21,00%
28,59% 38.95% 15,00%
  • Skopje
10,00% 10,00% 18,00%
  • Malta
35,00% 35,00% 18,00%
  • Montenegro
9,00% 9,00% 17,00%
  • Netherlands
25,00% 52,00% 19,00%
  • Norway
28,00% 54.3% 25,00%
  • Poland
19,00% 32,00% 23,00%
  • Portugal
15,00% 42,00% 23,00%
  • Romania
16,00% 16,00% 24,00%
  • Russia
20,00% 13,00% 18,00%
  • Serbia
10,00% 14,00% 18,00%
  • Slovakia
19,00% 19,00% 20,00%
  • Slovenia
20,00% 41,00% 20,00%
  • Spain
30,00% 45,00% 18,00%
  • Sweden
26.3% 56.6% 25,00%
  • Switzerland
25,00% 45,5% 8,0%
  • Turkey
20,00% 40,00% 18,00%
  • Ukraine
23,00% 15,00% 20,00%
  • United Kingdom
27,00% 50,00% 20,00%

 

 

As we all note that Cyprus has the lowest corporate Tax rate and at the same time with the infrastructure which exist creates an environment where all elements benefit and contribute to entrepreneurs for moving their trading products/goods from any other country in the EU as an entrance point or the other way around as an exit point. At the same time various EU resident people and companies use Cyprus for their EU trading activities.