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Taxes in Cyprus

Taxes in Cyprus

Updated on Tuesday 22nd September 2015

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When opening a company in Cyprus all investors pay special attention to taxation regulations. In Cyprus both individuals and companies are liable to income tax according to the Income Tax Law No. 118 issued in 2002. The income tax in Cyprus is paid for trade income, salaried services, pensions, interest, dividends, royalties and other incomes.

Income Tax in Cyprus

The income tax is applied to residents of Cyprus. A person is considered a resident if he or she is present on Cypriot territory for a period of time exceeding 183 days, therefore will be subject to the income tax from sources within Cyprus or abroad.  The Cypriot taxable income varies from 20% to 35 % depending on the income.

For pensions earned for services rendered abroad the income tax is set at 5 %.

The defense tax in Cyprus

The Cypriot defense tax is a special contribution people have to pay for unearned income sources such as dividends, bank interests, incomes from rents. The percent for this tax varies between 3 and 30 percent depending on the source of income.  The defense tax is imposed according to the Special Contribution for the Defense of the Republic Law No. 117, issued in 2002.

The capital gains tax in Cyprus (CGT)

The capital gains tax in Cyprus is imposed on earnings on immovable properties, shares on companies with immovable properties included. This rate is set at 20 percent. The tax is imposed according to the Capital Gains Tax Laws 1980-2002. For more information our Cypriot lawyers will remain at your disposal.

Immovable Property Tax in Cyprus

The Property Tax in Cyprus law stipulates a tax on the value on an immovable property.  All owners of immovlabe properties, including companies, are liable for paying the tax.

 The tax rates for immovable property as assesed in 1980 when the law was first issued vary from 0.6 %  to 1.9 % . The fiscal year in Cyprus begins in the 1st of January and ends on the 31st of December.

The due date for the submission of the income tax return for an employee is the 30th of April, and it can also be submitted online via the TAXISnet system with a 3 months extension.

 

 Our law firm in Cyprus will provide you with the best legal advice regarding all Cypriot taxes. Please contact us for further information.

 

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