(The details below are advisory only, IT IS UP TO YOU TO CHECK YOUR OWN TAX POSITION)
Tax is payable in Cyprus as it is in all European Union states. This is payable directly to the tax department. We recommed you organise a cyprus national for accountancy purposes.
As far as we are aware, these guidelines are still apllicable at time of this web site going live.
Cyprus has significant tax benefits for non-domiciled persons. From January 2003 changes to the tax system take effect. Unlike in the U.K. the tax year in Cyprus is the calendar year, which makes sense. Husband and wife or people living together as husband and wife are taxed individually.
Please check with your local tax office and the Tax of Cyprus to confirm exact details.
One important change is that up to January 2003 there was no minimum period of stay in Cyprus before being regarded as a tax resident. As from January 2003 you will be regarded as "tax resident" if you spend more than 182 days in a calendar year on the island. A part of a day counts as a whole day. Spending less than 183 days, from January 2003 you will not be regarded as resident for tax purposes. To take advantage of the Double Taxation treaty Cyprus has with the UK you will have to be in Cyprus for more than 182 days.
We are not liable for any misleading, incorrect or out of date information in these pages.
The information below is intended as a guide only and advice should always be sought from a qualified advisor. No responsibility will be accepted by living-cyprus.com for errors or omissions. The advice is CHECK first.
|
Tax scale rates |
2003 |
2004 |
Standard Income
tax rates from 2003. |
Upto cy£9,000 @ 0%
cy£9001 - 12000 @ 20%
cy£12,001 - 15000 @ 25%
Over cy£15,000 @ 30% |
Upto cy£9,000 @ 0%
cy£9001 - 12000 @ 20%
cy£12,001 - 15000 @ 25%
Over cy£15,000 @ 30% |
Tax changes due to
EU entry |
Before 1st January 2003 |
After 1st January 2003 |
|
Pension income tax rate |
5% over cy£2000 with an option to choose the standard rate. "Based on remittances to Cyprus" |
5% over cy£2000 or choose the standard rate based on "World Wide income" |
|
Pension income |
This applies once you are classed as resident for tax purposes, i.e. once you have been in Cyprus for more than 182 days in a calendar year. The days do not have to be consecutive! |
Income from pensions for employment outside of Cyprus, is taxable on a world wide basis, and you can choose which method is best for you. The rate above or use the standard rate as at the top of the table. Note the rates change in 2004 |
|
Bank interest Tax rate |
5% over cy£2000 based on remitted funds |
10% based on world wide income |
|
Dividends |
5% over cy£2000 based on remitted funds |
15% world wide less taxes paid overseas if any |
|
Wealth Tax |
None |
None |
|
Capital gains tax on:
Cypriot home:
Other Cypriot real estate:
Other assets: |
First cy£50,000 tax free
Taxable at 20% fixed rate
Tax free |
First cy£50,000 tax free
Taxable at 20% fixed rate
Tax free |
|
Property:
Outside Cyprus:
In Cyprus: |
None
Scale income tax plus 3% defence contribution on 75% of the income |
None
Scale income tax plus 3% defence contribution on 75% of the income |
|
Inheritance & gift tax |
None (But you may be liable to UK tax) |
None (But you may be liable to UK tax) |
|
Rental income from outside Cyprus |
No tax is due because this is normally taxed in the country where the property is situated |
No tax is due because this is normally taxed in the country where the property is situated |
|
Rental income from Cyprus. It is expected that you will be able to buy more than 1 property now Cyprus is an EU member. |
Scale rates after scale deductions for repairs, 3% depreciation, not on the land cost, loan interest. In addition after deducting 25% of the gross rent, there is a 3% defence tax. |
Scale rates after scale deductions for repairs, 3% depreciation, not on the land cost, loan interest. In addition after deducting 25% of the gross rent, there is a 3% defence tax. |
(The details below are advisory only, IT IS UP TO YOU TO CHECK YOUR OWN TAX POSITION)