An individual who is a tax resident in Cyprus should pay taxes for his worldwide income arising from sources within and outside Cyprus. Taxable income arises after deducting tax exemptions and allowances. Taxes are payable as follows:
| Taxable Income | Tax Rate | Tax Amount | Cumulative Tax |
| € | % | € | € |
| 0 – 19,500 | – | Nil | Nil |
| 19,501 – 28,000 | 20 | 1,700 | 1,700 |
| 28,001 – 36,300 | 25 | 2,075 | 3,775 |
| 36,301 – 60,000 | 30 | 7,110 | 10,885 |
| Over 60,001 | 35 |
The tax residency rules for Individuals:
- The 183 days tax resident rule
An individual who spends more than 183 days in Cyprus in a calendar year is a Cyprus tax resident. - The 60 days tax resident rule
An individual may become a tax resident in Cyprus if all the below conditions are met:
a. Does not spend more than 183 days in any other country,
b. Not being tax resident in any other country,
c. Remains in Cyprus for at least 60 days during the tax year,
d. Has business in Cyprus and / or works in Cyprus and / or being a director in a company resident in Cyprus at any time during the tax year, and
e. Has a permanent residence (own or rented) in Cyprus
We have an attractive rule for high profile individuals to enjoy the low tax rates of Cyprus
How to count your days:
- The day of departure from Cyprus is a day outside Cyprus
- The day of arrival to Cyprus is a day in Cyprus
- The arrival into Cyprus and the departure on the same
- day is a day in Cyprus
- The departure from Cyprus and the arrival on the same
- day is a day outside Cyprus
Tax exemptions
- Interest is exempt from income tax under certain conditions
- Dividends are exempt from income tax
- Profits from sale of securities (shares, bonds, debentures, options)
- Employment income exercised outside Cyprus if an individual was employed for more than 90 days in aggregate for a calendar year outside Cyprus for a non-Cyprus tax resident employer
- Employment income exercised in Cyprus by an individual who was not a resident of Cyprus before the commencement of the employment, is allowed 50% exemption provided that the annual remuneration exceeds €100.000. The exemption applies for a period of 10 years. The exemption was applicable up to 26 July 2022.
- 20% allowance with a maximum €8,550 every year for a period of five years, applied from the tax year following the year of commencement of the employment. The exemption was applicable up to 26 July 2022.
- Since 26 July 2022 individuals employed in Cyprus for the first time on a salary basis for an employer that is a Resident or a non-resident of the Republic of Cyprus have the two options:
a. 20% allowance with a maximum €8,550 every year for a period of seven years, applied from the tax year following the year of commencement of the employment Profits from a Permanent Establishment abroad under certain conditions, or
b. 50% allowance for 17 years provided that the annual remuneration exceeds €55.000 and they have not been resident in the republic of Cyprus for at least ten consecutive years prior to their employment in Cyprus.
Note: You cannot claim both exemptions simultaneously and occasionally full or part-time employment of not more than 120 days before your employment are not taken into account.
