|
|
|
|
Overview | History |
Climate | Taxation |
Population | Economics
|
 Taxation
|
|
|
|
The Cyprus taxation system is progressive, the higher your income, the more tax
you are liable for.
Tax rates for individuals range between 20% - 40%.
Personal Income Tax is as follows
|
|
Chargeable income (CYP)
|
Tax Rate %
|
|
Up to 9,000
|
0
|
|
9,001 –12,000
|
30%
|
|
12,000 and over
|
40%
|
|
|
Chargeable income (CYP)
|
Tax Rate %
|
|
Up to 9,000
|
0
|
|
9,001 –12,000
|
20%
|
|
12,000 – 15,000
|
25%
|
|
15,000 and over
|
40%
|
|
|
Chargeable income (CYP)
|
Tax Rate %
|
|
Up to 10,000
|
0
|
|
10,001 –15,000
|
20%
|
|
15,001– 20,000
|
25%
|
|
20,001 and over
|
30%
|
|
|
|
|
As of January 2003, anyone resident in Cyprus for more than 183 days a year, will
be considered a resident and will be liable to pay taxes on their worldwide income.
The tax year ends on Dec 31st.
Income tax is not payable on dividend income, whether it originates in Cyprus or
abroad.
Oversees pension income of Cyprus residents is subject to a 5% tax rate, while the
first CYP 2,000 is entirely tax exempt.
Income from interest income is no longer liable to personal income tax. For interest
income earned in 2002 the first CYP600 is not liable for taxation, and 50%of any
amount over that is also exempt from taxation.
VAT is now at 15%.
Profit on the sale of real estate or of shares in a company that owns real estate,
is taxable at the rate of 20%. There is a basic exemption for an individual. The
exemption is conditional on the class of the real estate, a commercial asset being
subject to a higher rate of capital gains tax than a residential apartment and so
forth. The amount of the exemption on the sale of a residential apartment is up
to a maximum of CYP 50,000.
The basic tax rate is 25%. For income up to CYP 40,000, the rate of tax is 20%.
Offshore companies are taxed at one-tenth of the normal rate (4.25%) regardless
of the place of management and control of the company. Shareholders who receive
dividends from offshore companies are not subject to any further taxation.
Cyprus has an extensive network of double taxation treaties with the following countries:
Canada, China, the Czech Republic and Slovakia, Denmark, Egypt, France, Germany,
Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania,
Russia, (including all the CIS countries except for Kazakhstan) Sweden, Syria, United
Kingdom, USA and the former Yugoslavia.
Similar agreements with Austria, Belgium, Finland and Mexico are either under negotiation
or awaiting ratification. Under these treaties there are possibilities to obtain
income that is not taxable or that is taxed at a reduced rate.
Overall, in comparison to most European countries Cyprus definitely still offers
great tax incentives to anyone considering making Cyprus their home.
|
|
|
|
|
|
|
|