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Last checked : 12/09/2018

Income taxes abroad – Cyprus

I'm an employee

Which income will be taxed in Cyprus?

Income from other EU countries? Make sure you never pay tax twice on the same income.

You have to pay tax on the income earned in and outside Cyprus (worldwide income) if you are tax resident in Cyprus according to:

  • The 183-day rule, i.e. you are present in Cyprus for a period or periods exceeding in aggregate 183 days in the tax year, or
  • The 60-day rule, i.e. you meet all the following conditions:
    • you are not a tax resident of another state
    • you do not stay for more than 183 days in another state
    • you stay in Cyprus for at least 60 days
    • you exercise any business in Cyprus or render salaried services in Cyprus
    • you have a permanent residence in Cyprus which you own or render.

You have to pay tax only on income earned in Cyprus even if you are not a tax resident in Cyprus.

How much will you pay?

What's left of your gross income after deduction of taxes and social security contributions?

Income tax rates for 2017 (2018  return)

Bracket

Annual income

Rate

1

up to €19 500

0%

2

€19 501 – €28 000

20%

3

€28 001 – €36 300

25%

4

€36 301 - €60 000

30%

5

€60 001 and over

35%

Take into account:

  • tax allowances are available to all taxpayers, but the amount depends on your personal situation
  • any deductions you are entitled to for certain types of expenditure
  • income from other sources are not taxable under certain  rules and conditions:
    • income from dividends and interest
    • income from employment outside Cyprus (salary earned abroad)
    • profit from the sale of securities
  • income received in the form of retiring gratuity, compensation for death or injuries, approved provident fund, approved pension fund, or other approved funds, is exempted from tax.

When and how do you pay?

Under the scheme of P.A.Y.E (Pay As You Earn), your employer will deduct the amount of tax and social security contributions due on your annual salary.

If your gross annual income exceeds €19 500, you must submit your tax return electronically through TAXISnet by 31 July the following tax year.

How to appeal/complain

If you disagree with your tax assessment, you can appealel to the tax department.

Read your tax assessment letter carefully to find out which District – Department you should send your appeal to and which procedures you need to follow.

Links

Cypriot government – income tax info

Instructions on how to complete employee's income tax returnpdfel

I'm self-employed

Which income will be taxed in Cyprus?

Income from other EU countries? Make sure you never pay tax twice on the same income.

You have to pay tax on the income earned in and outside Cyprus (worldwide income) if you are tax resident in Cyprus according to:

  • The 183-day rule, i.e. you are present in Cyprus for a period or periods exceeding in aggregate 183 days in the tax year, or
  • The 60-day rule, i.e. you meet all the following conditions:
    • you are not a tax resident of another state
    • you do not stay for more than 183 days in another state
    • you stay in Cyprus for at least 60 days
    • you exercise any business in Cyprus or render salaried services in Cyprus
    • you have a permanent residence in Cyprus which you own or render.

You have to pay tax only on income earned in Cyprus if you are not a tax resident in Cyprus.

How much will you pay?

What's left of your gross income after deduction of tax allowances and social security contributions

Income tax rates for 2017 (2018 return)

Bracket

Annual income

Rate

1

up to €19 500

0%

2

€19 501 – €28 000

20%

3

€28 001 – €36 300

25%

4

€36 301 - €60 000

30%

5

€60 001 and over

35%

Take into account:

  • tax allowances are available to all taxpayers, but the amount depends on your personal situation
  • any deductions you are entitled to for certain types of expenditure
  • income from other sources are not taxable under certain  rules and conditions:
    • income from dividends and interest
    • income from employment outside Cyprus
    • profit from the sale of securities
  • loss from trade within the current year and or previous years is deducted from the taxable income, subject to certain terms and conditions.
  • income received in the form of retiring gratuity, compensation for death or injuries, approved provident fund, approved pension fund, or other approved funds, is exempted from tax.

When and how do you pay?

You must file a temporary tax assessment estimating your annual taxable income for the current year by 31 July. Based on the estimated return (temporary assessment), you must make 2 equal advance payments on 31 July and 31 December in the current year.

Any tax balance due is payable through Self Assessment as follows:

  • You earn less than €70 000 - if your turnover from trade, gross rents received, gross dividends received and gross interest received is less than €70 000, you must submit your income tax return electronically by 30 September through TAXISnet in the year following the tax year. You must pay any tax due by 30 June.
  • You earn more than €70 000 - if your turnover from trade, gross rents received, gross dividends received and gross interest received is more than €70 000, you must submit your income tax return only electronically through TAXISnet by 31 March of the second year following the tax year. This return must be accompanied by audited accounts — your final taxable income will be calculated on the basis of these audited accounts. You must pay any tax due by 1 August in the year following the tax year.

How to appeal/complain

If you disagree with your tax assessment, you can appealel to the tax department.

Read your tax assessment letter carefully to find out which District – Department you should send your appeal to and which procedures you need to follow.

Links

Cypriot government – income tax info

See main information on this topic

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