Cyprus Taxation

Income Tax for Individuals

Where an individual is a resident in Cyprus, tax is imposed on income accruing or arising from sources both within and outside the Republic of Cyprus.

If an individual is not a resident of Cyprus, tax is imposed only on the income accruing or arising from sources within Cyprus.

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Income Tax for Companies

Any company that is considered to be a resident in Cyprus is taxed on its income accruing or arising from sources within and outside Cyprus.
A company is considered to be a resident in Cyprus if it is managed and controlled in Cyprus.
A company that is not a resident in Cyprus is taxed only on income accruing or arising only from sources in Cyprus.

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Value Added Tax

Value Added Tax is imposed on the acquisition of goods from other Member States of the European Union, on the provision of goods and services in Cyprus as well as on the importation of goods into Cyprus.

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Immovable Property Tax

Immovable property tax is imposed on the market value of immovable property as at January 1st 1980 and it applies per owner, not per property. Property owners whose property has a total value of €12.500 or less are exempt from Immovable Property Tax.

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Land Registry Fees

Transfer of immovable property which subject to VAT during the period between 1 December 2011 to 31 December 2016 are exempt from transfer fees.

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Tonnage Tax System

The Tonnage Tax System applies to qualifying ship owners, ship charterers and ship managers of qualifying ships engaged in qualifying activities.

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