Taxation 
Cyprus has the lowest corporate tax in Europe of 12.5%.

Moreover, Cyprus has agreements with 40 countries for double taxation avoidance (Russia, United Kingdom, Ireland, Netherlands, Italy, France to name a few).

Furthermore, for individuals, a very high level of income is taxed at zero rate, with extremely low taxation for anything exceeding that amount.

Taxation in Cyprus, is levied by both central and local governments. Tax revenue stood at 39.2% of GDP in 2012. The most important revenue sources are the income tax, social security, value-added tax and corporate tax, and are all collected by the central government.

Income taxes is levied on a progressive rate. Current brackets vary from 0% to 35% in the tax rates for 2014. Furthermore, various tax allowances apply for trade union fees, donation to charities. The Tax for the year 2014:

Annual income	Tax rate
In between €0 and €19500	0%
In between €19500 and €28000	20%
In between €28000 and €36300	25%
In between €36300 and €60000	30%
In excess of €60000	35%

Employment income is also subject to various social security contributions. Contributions are subject to a ceiling, for the year 2014 the maximum amount of insurable earnings has been set to €54396 per year. Employee pay 7.8% of wage and employer contribute 11.5% of corresponding wage.

Value-added tax apply the most sale of goods and services. The standard rate apply at 19% in 2014, up from 17% since 2013. A lower rate of 9% apply groceries, books and hotel services. The Cyprus VAT is part of the European Union value added tax system. Certain goods and services are exempt from VAT. This include export, financial services, rent etc.

Corporate taxes are levied at a rate of 12.5%. Various deductions apply including interest cost of buying other companies, and employers cost to social security.