No capital gains tax is payable on the sale or transfer of shares in an IBC No estate duty is payable on the inheritance of shares in an IBC Cyprus has concluded an impressive number of treaties for the avoidance of double taxation. There are currently 31 in force . The existence of these treaties, combined with the low tax paid by IBCs, offer significant possibilities for international tax planning through the island. An eligible expatriate may acquire a second duty-free car for the use of his family if his salary, as declared to the Department of Inland Revenue, is more than CYP20.000 per annum.
Transactions effected by IBCs are outside the scope of value added tax.
As a result, IBCs do not need to register for VAT purposes. Telecommunications services offered to IBCs which have fully fledged and fully staffed offices in Cyprus may be exempted from VAT with the approval of the Central Bank.