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Taxation in Cyprus

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Taxation in Cyprus

Cyprus related forum posts

 

  1. starting a business

    hi can anyone tell me who are the best people to approach for information on starting a business up in cyprus. e.g. solicitor, estate agent. ect. i run a business here but want to start one from scratch in cyprus, in the leisure side of things. thanks charlie

    Total Posts: 6 Last post by aladjihassan

  2. Wholesale/Distribution to Private retailers, a question on "culture" of how business is conducted between them

    I am looking to distribute my own brand of Womenswear from Spain where I reside to carefully selected Boutiques & Clothing Shops in Cyprus. How is business conducted at a distributor/wholesale level to privately owned retail shops as far as finance & agreements are concerned? I will be visiting Cyprus early next year after making key appointments before my visit and would like information on t

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Taxation in Cyprus

The taxation system in Cyprus is progressive, therefore the greater your income, the higher rate of income tax you are liable to pay. The individual tax rate in Cyprus is 20% - 30%. The corporate tax rate is 10%. Residents are liable to pay defence contribution for passive income, and the rates are 3%-15%, while non-residents are exempt.

You are considered a resident of Cyprus if you have established residence in the country for a minimum of 183 days during the calendar tax year or have a life that is centred in Cyprus, which you are able to prove. Tax is payable on worldwide income for residents of Cyprus and a foreign resident who is employed in Cyprus only pays tax on income earned in Cyprus.

Both the individual capital gains tax rate and capital gains tax for a corporation is 10%.

Cyprus Individual income tax rates:

  • 0% on income between 0 and 19, 500

  • 20% on income between 19, 501-28, 000

  • 25% on income between 28, 001- 36, 300

  • 30% on income between 36, 301 - 60,000

  • 35% on 60,001 plus


VAT in Cyprus

VAT in Cyprus is 19% with a reduced rate on 5% - 9%

Click here to Ask an Expert about Taxation in Cyprus

Organisations that can assist with Taxation

  • > Sovereign Group

    Sovereign offers a range of advisory and support services to assist companies of all sizes to establish successful business operations in foreign markets

    More Details Visit Website

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