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Tax advisory goes beyond compliance and annual filings. It is the process of designing and implementing tax-efficient structures that align with your business strategy while remaining fully compliant with Cyprus, EU, and international regulations.
While tax compliance focuses on accurately reporting what has already happened, tax advisory focuses on shaping what will happen.
At DPCA, we act as your dedicated tax advisor in Cyprus, helping you design tax-efficient, compliant structures that support your long-term strategy. We bring together:
Our goal is simple: to ensure your tax position is efficient, transparent, and robust, so you can make decisions with confidence.
Most companies engage professional tax advisors when circumstances change or complexity increases. You should consider working with DPCA’s tax team when:
If any of these situations apply to your business, DPCA can help you build a tax position that is both efficient and defensible.
The way your business is structured today will either enable or limit your options tomorrow. DPCA helps companies review, design, or redesign their Cyprus structures so they support both everyday operations and long-term plans.
Typical questions DPCA answers for clients:
Our work often includes:
You don’t just get a structure on paper. You get a structure that works operationally, tax-wise, and governance-wise.
If your business operates only in one country, tax may look simple. The moment you add more jurisdictions, it becomes a network of rules: residency, permanent establishment, withholding taxes, and treaties.
DPCA helps you answer questions such as:
DPCA services include:
The result is a structure that can withstand both commercial growth and regulatory scrutiny.
Cyprus provides several powerful tax tools. Many businesses either don’t use them or use them without proper substance or documentation. DPCA focuses on using incentives correctly and in a way that lasts.
Key areas DPCA works on:
We don’t simply say “use NID” or “use IP Box”. We model the numbers, consider your risk appetite, and implement what actually fits your business.
Tax compliance is more than submitting a return. It is how you demonstrate that your structure and decisions are legitimate and consistent.
DPCA helps you build a compliance framework that:
Typical services:
| Persona | Your Situation | How DPCA Helps |
|---|---|---|
| CFO / Finance Manager | You are responsible for financial reporting, tax planning, and explaining tax impacts to management and shareholders. | DPCA provides an annual tax plan, reviews your structure, model scenarios, and reduces surprises at year-end, working closely with Accounting and Audit. |
| Startup Founder | You want to build a scalable structure that investors recognise as professional and tax-aware. | We help you decide where to place your IP, how to capitalise the business, and how to use Cyprus structures effectively, starting with the right setup of your Cyprus Company. |
| Investor Buying Property or Assets | You are considering investments in Cyprus or abroad and want clarity on the real after-tax return. | We structure acquisitions and holdings, assess capital gains, and align tax with residency planning, often in combination with our Residency Services. |
| Multinational Group Setting Up a PE | You are expanding into Cyprus and need to ensure your presence is compliant, efficient, and consistent with global policies. | We help design the PE or Cyprus entity, define its functions, and build the right substance framework, linking this with your broader rationale for choosing Cyprus. |
| Group Finance Director / Head of Tax | You oversee transfer pricing, intragroup transactions, and global tax policy, with Cyprus as part of your structure. | We assist with transfer pricing implementation in Cyprus, documentation, and support on valuations and flows, in collaboration with our Business Valuation and Advisory teams. |
Most tax problems don’t start with aggressive planning. They start with small omissions, delayed decisions, or “we’ll fix it later” thinking.
Here are issues DPCA repeatedly sees and helps clients avoid:
1. Treating tax as an annual exercise
Many organisations only look at tax when the return is due. By then, structure, contracts, and transactions are already locked in.
DPCA’s approach: We encourage an annual tax strategy review, not just annual compliance. This gives you time to adjust financing, flows, and incentives ahead of deadlines.
2. Relying solely on basic accounting support
Compliance accountants are vital, but their role is different from that of a tax advisor. If you only rely on bookkeeping and year-end filings, you risk missing structural opportunities.
DPCA’s approach: We ensure Accounting Services and Tax Advisory work together: accounting reflects reality, tax planning shapes it.
3. Weak or non-existent documentation
Even when structures are valid, many companies fail to keep clear records of why decisions were made. This can undermine their position in an audit.
DPCA’s approach: We prepare tax memos, transfer pricing documentation, ruling applications, and internal notes that support your positions.
4. Not using Cyprus incentives at all
We often meet companies that qualify for incentives like NID or IP Box but never applied them, effectively paying more tax than necessary.
DPCA’s approach: We audit your current structure for incentive opportunities, starting with Notional Interest Deduction (NID) and, where suitable, IP Box and participation exemptions.
5. Missing tax planning during M&A or restructuring
By the time contracts are signed, most of the tax outcome is already locked. Bringing tax advisors in only at the end usually means lost value.
DPCA’s approach: We join the process early, modelling structures and timing so the tax outcome actually supports the deal rationale.
6. Using generic “one-size-fits-all” structures
Some setups look attractive on paper but ignore your real business model and risk profile. Regulators are increasingly sceptical of such structures.
DPCA’s approach: We design structures that make sense for your business, backed by substance, documentation, and a clear business rationale.
DPCA focuses on building long-term relationships where we understand your business deeply and help you adjust your tax strategy as you grow.
Yes. Cyprus offers one of the most competitive tax environments in the EU with a 12.5% corporate tax rate, extensive double tax treaty network (65+ countries), and legitimate incentives that can significantly reduce effective rates. The combination of low rates, EU membership, OECD compliance, and proper incentive structures makes Cyprus particularly attractive for international holding companies, IP ownership, and cross-border operations. When structured correctly with genuine substance, Cyprus provides sustainable tax efficiency that withstands regulatory scrutiny.
The standard rate is 12.5% on worldwide income for Cyprus tax resident companies. However, your effective rate can be much lower through proper planning. The Notional Interest Deduction (NID) allows deductions on new equity capital. The IP Box regime exempts 80% of qualifying IP income, resulting in a 2.5% effective rate. Dividends from qualifying subsidiaries and most capital gains are exempt. For large multinational groups (revenues over €750 million), Pillar Two rules establish a 15% minimum effective rate from 2024.
DPCA works extensively with international groups using Cyprus as part of their global structure. Our clients include multinationals, private equity funds, family offices, and investors from the UK, EU, US, Middle East, and Asia. We understand how Cyprus structures interact with other tax systems and regularly collaborate with your existing advisors (international accounting firms, lawyers, in-house tax teams) to ensure seamless cross-border planning. Learn more about setting up a Cyprus company as part of your international structure.
At least once per year, ideally aligned with your financial planning cycle. You should also review immediately when planning a major transaction (acquisition, sale, restructuring), expanding into new countries, changing ownership structure, introducing new business lines, or when tax laws change significantly in Cyprus or your operating jurisdictions. Proactive review prevents costly surprises. By the time issues surface during audits or transactions, your options become limited and expensive.
You need genuine substance, not just a registered address. For valid Cyprus tax residency and treaty access, your company must have real management and control in Cyprus: a physical office, qualified local personnel, board meetings in Cyprus with actual decisions made there, accounting records maintained locally, and genuine business direction from Cyprus. The required substance level depends on your activities. A passive holding company needs less than an active trading or IP management operation. We help establish appropriate substance that’s both defensible and cost-effective for your situation.
Yes, when properly structured with genuine substance. Both are established Cyprus tax law features used successfully by many companies, but they’re not automatic. For NID, you must inject new equity, document it properly, meet calculation requirements, and show the equity is actually used in business. For IP Box, you need qualifying IP (patents, software copyrights), proven R&D activities, proper Cyprus substance (R&D staff, management), and detailed calculations for the 80% exemption. Structures lacking substance won’t survive audits.
Absolutely. DPCA frequently collaborates with international accounting firms, legal counsel, and in-house tax teams. Our role is providing Cyprus-specific expertise that complements your broader advisory relationships. DPCA participates in joint calls, coordinate documentation, and ensures Cyprus aspects align with your global strategy. Our accounting services and audit services can integrate with your existing advisors or operate independently, depending on your needs.
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