Cyprus makes the cut in new tax-friendly nations list

In a recent announcement, the Ministry of Finance shed light on the revised list of countries enjoying preferential tax status under the Independent Authority for Public Revenue of the Hellenic Republic (IAEA).

Published on December 27, 2023, this updated list now includes Cyprus among 41 other jurisdictions.

Cyprus secured its spot on the list as of March 7, 2014, meeting the inclusion conditions outlined in Article 65 of Law 4172/2013 of the Hellenic Republic.

This law designates countries with a tax rate on profits, income, or capital that is 60% or less than the corresponding rate in Greek tax legislation.

Given Cyprus's corporate tax rate of 12.5%, significantly below Greece's 22%, it has maintained its position on the list since 2014. Notably, other European jurisdictions, such as Ireland, Hungary, and Bulgaria, share this status, though none feature on the European List of Non-Cooperative Jurisdictions.

This distinction arises from criteria related to tax transparency, exchange of information, and fair taxation.

Crucially, the inclusion of Cyprus on this list carries no implications for the commercial and economic relations between the two states, nor does it impact business activities between Cypriot and Greek companies.

This development underscores the ongoing efforts to ensure transparency and fairness in international tax policies.