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Seychelles – Cyprus Double Tax Treaty

Seychelles – Cyprus Double Tax Treaty

Entrepreneurs from Cyprus who want to set up a company in Seychelles need to know that the two countries have signed a double taxation agreement which entered into force in 2006. Investors have several tax benefits, both in Seychelles and Cyprus, but for a proper understanding of this important convention, we invite you to get in touch with our company incorporation agents in Seychelles. They can also help you with opening a company in Seychelles.

What are the provisions of the DTT signed by Seychelles and Cyprus?

Among the key features of the double taxation agreement signed between Seychelles and Cyprus, we mention that the interests, royalties, and dividends derived from Seychelles offshores are not subject to taxation, meaning that a withholding tax is not imposed for repatriated interests and dividends. Also, you should consider the following provisions that can help entrepreneurs understand better the tax structure for businesses in Seychelles:

  • •    a credit is granted in Seychelles if the company paid the taxes in the country of origins, in this case, Cyprus;
  • •    the capital gains as result from the share sales of a Special License company (CSL) is levied in Seychelles if the permanent establishment is in the insular state;
  • •    the tax rate of 1.5% on the worldwide income is applicable to CSLs, but a withholding tax which is paid in Cyprus can be credited instead of this tax;
  • •    there is no withholding tax rate applicable for CSLs on repatriated profits if the permanent establishment is in Cyprus.

We invite you to ask for information about the double tax treaties signed by Seychelles and Cyprus from our team of consultants in company formation in Seychelles. We also remind that our advisors are at your disposal with assistance if you what to set up an offshore in Seychelles.

If you register a Seychelles offshore business, you can benefit from many types of tax exemptions and 100% exempted from the payment of the corporate tax.

For example, an IBC can completely exempted from the payment of any taxes on its profits, as long as a set of conditions apply (the business operations are not connected to Seychelles, the company is not involved in the gaming/gambling industry). 

The advantages of the DTT between Seychelles and Cyprus

Seychelles and Cyprus have an extended business and economic collaboration for many years, and the importance of the double taxation treaty between the two states are strengthening the investment and business field through all sorts of tax advantages. The DTT supports the registration of IBCs as holding companies for Cypriot business entities. Also, with the help of the double taxation agreement signed by Seychelles and Cyprus, the archipelago can access the European markets through Cyprus.

You are invited to contact our team of company formation representatives in Seychelles for extra information about the DTT signed by Seychelles and Cyprus.