Simple Cyprus Guide
Cyprus Taxes are a very important aspect you need to consider before making any serious decisions about moving abroad to Cyprus any other country, for that matter.
If you intend to become a permanent resident or a non-resident you need to know what taxes you will be liable to pay.
You can find out about the different taxes which may affect you right here.
- Cyprus Income Tax
- Tax on Pensions
- Immovable Property Tax
- Capital Gains Tax
- Inheritance Tax
Being a Cyprus Resident and Your Tax Liabilities
You are classed as a resident of Cyprus if you are living here for 183 days upwards in a tax year.
A tax year in Cyprus runs between 1st January to 31st December.
Therefore, you will pay tax on earnings in Cyprus and anywhere else in the world that you may be generating an income. Why?
Cyprus has signed an information sharing EU Tax Directive.
Which means, Cyprus is bound to share individual EU citizen savings activities and information with your home country Inland Revenue Authority.
Big Brother is always watching us!
Being a Non-Resident in Cyprus and Tax Liabilities
As a non resident, staying less than 183 days in a tax year, you pay tax on money you earn in Cyprus.
About Taxes in Cyprus
You will be pleased to know that Cyprus has some of the lowest tax rates compared to other EU countries.
Tax on Pensions is only 5%
General Cyprus Taxes
You are allowed to earn up to 19,500 Euros before paying any tax on your earnings.
Isn't that good news!
Above that tax free allowance, the percentage of tax you pay is…
19,501 to 28,000 euros, you pay 20%
28,000 to 36,300 euros you pay 25%
36,001 euros upwards, it’s 30%
Tax on Pensions
As I mentioned above, tax on pensions in Cyprus is fixed at 5%, over the tax free allowance of 3.417 Euros for non Cypriots who do not earn any other income in Cyprus.
Cyprus Immoveable Property Tax
Immoveable Property Tax is a yearly tax which is paid by everyone who owns a property in Cyprus, whether you are a resident or non-resident.
You only start paying immovable property tax once you have the title deeds for the property.
The tax is based on market value of a property at 1st January 1980 or whenever you purchased it after that date.
Properties which have a value below 170.860 Euros don’t pay any immovable property tax.
Property values above 170.860 and percentage tax you would pay...
170.861 - 427.150 - 0.25% - 641 Euros
427.151 - 854.300 0.35% 1.495 Euros
854.301 and above - 0.40%
Capital Gains Tax in Cyprus
Capital gains tax in Cyprus is set at 20% of any profit made from selling property in Cyprus.
Cyprus Inheritance Tax
There is no inheritance tax, wealth tax or family gift tax, such as directly passing a property onto family members.
Cyprus Tax Haven Information
Top of Cyprus Taxes
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