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Resident taxpayers in Cyprus are taxed on all income acquired or derived from
sources in Cyprus and abroad. A resident taxpayer is a person who lives in
Cyprus for a total of more that 183 days in the tax year.
The tax rates for natural persons are:
- first €17 144 – 0%
- €17 144 – €25 716 – 20%
- €25 716 – €34 288 – 25%
- over €34 288 – 30%
The calculation of taxable income takes account of deductible and discounted
items such as subscriptions to trade unions and professional associations,
donations to approved charities, Social Insurance Fund contributions, Pension
Fund contributions, Relief Fund contributions and life insurance premiums etc.
Spouses are taxed separately on the basis of separate annual income tax
returns.
The income of a resident of the Republic from a pension in respect of
services provided outside the Republic is subject to a tax rate of 5%, with
exemption for the first €3,430 in each year.
- You are advised to contact the Inland Revenue Department (Tel: +357 22 80
72 85, email) for the necessary
details concerning your own case
The rates of VAT vary according to the type of product or service on the
basis of the legislation. The following rates are applicable:
- the zero rate (0%)
- the reduced rate (5%)
- the standard rate (15%)
The delivery of a house, apartment or business premise, etc. for which
planning permission was applied for after 1/5/2004 is subject to VAT at 15%.
Plots and land are exempt from VAT when sold without any form of building.
Text last edited on: 12/2007
Source: European Union
© European Communities, 1995-2008
Reproduction is authorised.
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