Cyprus and the Interest Limitation Rule

Offshore Tax with HTJ.tax · Oct 14, 2025 · 2m

In this episode, we break down Cyprus’s Interest Limitation Rule (ILR) — a cornerstone of the EU’s Anti-Tax Avoidance Directive (ATAD) framework.The rule is designed to curb profit shifting through excessive interest deductions and ensure Cyprus remains a transparent, compliant, and competitive jurisdiction.We’ll explain how the 30% EBITDA cap works, what the main exemptions are, and how businesses can manage compliance effectively under this regime.🧩 Key Topics CoveredPurpose of the RuleThe ILR targets base erosion and profit shifting (BEPS) strategies that exploit intra-group financing.➤ In…