Royalties
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Incoming Royalties
Depending on the jurisdiction of source, no withholding tax or reduced withholding tax is often available either under a Double Taxation Treaty or the EU Interest and Royalty Directive. The Cypriot network of Double Taxation Treaties offers low or zero rates of withholding tax on royalties in most cases.
Outgoing Royalties
Cyprus does not impose withholding tax on royalties paid by a Cypriot company, if the rights are exercised outside of Cyprus by the Cypriot company. This applies irrespective of the location of the non-resident beneficiary of the royalty payments.
When the royalties are connected with use in Cyprus, a 10% withholding tax is levied, subject to the provisions of any treaty or directive.
