Zero income tax means that less money is coming out of your paycheck each month, and when tax season c0mes around, you only have to submit a federal return.
Zero income tax means that less money is coming out of your paycheck each month, and when tax season c0mes around, you only have to submit a federal return.
Someone who spends more tan 183 days in Cyprus in a year will be considered a Cyprus Tax Resident. The days that are spent in and out of the Republic of Cyprus are calculated as the following:
As of January 1st, 2017, someone may be considered a tax-resident. This applies when;
| Taxable Income | Rate | Amount |
|---|---|---|
up to €19.500 | zero | zero |
€19.501 – €28.000 | 20% | €1.700 |
€28.001 – €36.300 | 25% | €2.075 |
€36.301 – €60.000 | 30% | €7.110 |
€60.000 – €100.000 | 35% | €14.000 |
€100.000 + | 35% | € – |
| Interest Income. | 100% |
| Dividend Income. | 100% |
| Profits from disposal of shares and other securities. | 100% |
| Profits from permanent establishment abroad under certain conditions. | 100% |
| Foreign pension. | €3.420 |
| Capital sums resulting from any payments to approved funds. | 100% |
| Lump sum received as gratuity for retirement, compensation for death or injury, or computation of pension. | 100% |
| Remuneration (money made from work or from a service) from outside Cyprus to an establishment abroad or a foreign employer for more than 90 days in a tax year. | 100% |
| Remuneration from any office or employment of someone in Cyprus, given that they weren’t a resident of the Republic of Cyprus before starting their employment. This exemption is granted for a period of 10 years, for employments commencing from 1 January 2012 if the annual remuneration exceeds €100.000. (For employments commencing from 01/01/2015 the exemption does not apply. | 50% |
| Remuneration from any office or employment of an individual in Cyprus provided that he was not resident in Cyprus before the Commencement of his employment. For employments commencing during or after 2012 the exemption applies for a period of 5 years starting from the tax year following the year of commencement of the employment. The last eligible year is 2020. (This exemption is granted provided the above 50% exemption is not claimed). | 20% (maximum of €8.550) |
The corporation tax rate in Cyprus is 12.5% standard Corporate Tax rate.
If the Company is subject to the IP Box the Corporation Tax rate is 2.5%
The VAT in Cyprus is 19%
If you would like full list of VAT Rules and understanding please visit
Someone who spends more tan 183 days in Cyprus in a year will be considered a Cyprus Tax Resident.
Zero income tax means that less money is coming out of your paycheck each month, and when tax season c0mes around, you only have to submit a federal return.
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E-mail: admin@cyprusconsultancy.com