Cyprus maintains its position on the list issued by Greek tax authorities for countries with a preferential tax regime due to its low corporate tax rate of 12.5%.
This rate, to some extent, serves as an incentive for attracting foreign companies.
Renewed annually by the Independent Authority for Public Revenue (AADE) of the Hellenic Republic through ministerial decrees, our country has been on this list for several years.
Similar to other destinations with a low tax rate, this aligns with the efforts of Greek authorities to combat tax evasion. Many Greek companies, seeking more attractive tax havens due to high taxation in Greece, explore alternatives.
According to information from a reliable government source, the inclusion of Cyprus on this list, commonly referred to by Greek media as a “tax haven list,” is not necessarily positive.
However, it is purely a technocratic list without political implications. The list identifies destinations where Greek entities, if domiciled in the 42 specified locations, would pay significantly lower taxes in comparison to maintaining their headquarters in Greece.
The tax difference is determined concerning whether they would remain based in Greece.
