Q.What taxes do I pay if I own and sell different types of securities (shares, bonds, debentures etc.)

A.An individual who is tax resident in Cyprus is taxed at 0% on profit arising on the disposal of any securities.

 

Q.What taxes do I pay if I own a property in Cyprus?

A.The ownership of a property in Cyprus does not result in any property taxes.

In the case where the property is rented out, wear and tear of the property as well as the interest expense on borrowing obtained to buy the property are tax deductible for personal income tax purposes.

 

Q.What taxes do I pay from inherited assets

A.The executor/ administrator of the estate of the deceased does not pay any taxes for the assets inherited.

 

Q.What is the corporation tax rate in Cyprus?

A.The normal corporation tax rate stands at 12.5%. However, as a tax incentive from the government regarding Intellectual Property (IP), Cyprus offers an 80% income tax exemption for worldwide royalty income generated from IP owned by Cypriot resident companies, net of any direct expenses.

Intellectual Property (IP): Cyprus offers an 80% income tax exemption for worldwide royalty income generated from IP owned by Cypriot resident companies, net of any direct expenses.

 

Q.What taxes do I pay if I receive a lump sum (also called “efapax”) when I retire in Cyprus?

A.Lump sum received by way of retiring gratuity, commutation of pension or compensation for death or injuries is exempt from any form of tax.

 

Q.What taxes do I pay if I receive pension from abroad?

Overseas pension is taxed at 0% up to €3.420/year and 5% flat rate on amounts over €3.420/year.

 

Q.What taxes do I pay if I receive pension from abroad?

A.0% up to €3.420/year and 5% flat rate on amounts over €3.420/year.

 

Q.What taxes do I pay if I sell any immovable property owned in Cyprus?

A.20% tax (Capital Gains Tax) is imposed on the gains arising on the disposal of immovable property. Lifetime exemption amounting to €85.340 is deducted from the taxable capital gain on the disposal of private principal residence. (Note: properties sold abroad are not taxed in Cyprus)

 

Q.Can I set up a company with Permanent Residence (PR)?

A.Yes.

 

Q.Who is considered to be a Cyprus tax resident?

A.Tax resident in Cyprus is considered an individual who:

a) spends more than 183 days in Cyprus in any one calendar year or;

b) spends minimum 60 days in Cyprus and must not be tax resident in any other country (minor other rules apply).

 

Q.Do I need to pay all the money for the property under PR in advance?

A.No, stage payments apply according to construction progress (Note: for the application to start the first €210.000+VAT needs to be paid).

Tax resident with Cypriot Father (Domiciled)
Income taxSDC*GHS**
Dividends(CY&abroad) n/a 17%2,65%
Interest (CY&abroad)n/a30%2,65%
Rental income (CY&abroad)Taxable normal rates3% on 75% of gross income2,65%
Salary (CY&abroad) Taxable normal rates n/a2,65%

*Special Defence Contribution
** General Health System

Tax resident with No Cypriot Father(Non‐domiciled)
Income taxSDCGHS
Dividends(CY&abroad) n/a n/a2,65%
Interest (CY&abroad)n/a n/a2,65%
Rental income (CY&abroad)Taxable normal rates n/a2,65%
Salary (CY&abroad) Taxable normal rates n/a2,65%

Non‐tax resident
Income taxSDCGHS
Dividendsn/a n/a n/a
Interestn/a n/a n/a
Rental income (CY only)Taxable normal rates n/a2,65%
Salary (CY only) Taxable normal rates n/a2,65%

Personal Income Tax
Chargeable income tax yearTax rate Accumulated tax
%
First 19.500NilNil
From 19.501 ‐ to 28.000201.7
From 28.001 ‐ to 36.30025 3.775
From 36.301 ‐ to 60.00030 10.885
Οver 60.00035

Corporation Tax ‐ with Tax resident and Non‐tax residentshareholders
Tax12,5%