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.
Tax Rates for individuals
| Taxable Income € | Tax Rate % | Tax € | Cumulative Tax € |
|---|---|---|---|
| 0 – 19.500 | 0 | 0 | 0 |
| 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 60.000 | 35 |
Foreign pension is taxed at the rate of 5%. An annual exemption of €3.420 is granted. The taxpayer can however elect to be taxed at the normal rates and bands set out above. This is a choice which may be made year-on-year.
Exemptions
| Lump Sum payment on Retirement | 100% |
| Capital Sums from Life Insurance Policies | 100% |
| Capital Sums from Approved Pensions | 100% |
| Emoluments of Foreign Diplomatic Representatives | 100% |
| Foreign Exchange Gains (Realized and Unrealized) | 100% |
| Interest Income | 100% |
| Dividend Income | 100% |
| Profit from Sale of Securities | 100% |
Tax Deductions
| Expenses on Rented Property | 20% of Rents |
| Interest Paid in Respect of Rented Property | 100% |
| Subscriptions to Unions & Professional Associations | 100% |
| Donations to Approved Charitable Institutions | 100% |
| Social Insurance Contributions, Life Insurance Premiums and Contributions to Approved pensions | Up to 1/6 of Taxable Income |
| Special Contribution for Employees | 100% |