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Updated : 31/07/2017

Income taxes abroad – Cyprus

I'm an employee

Which income will be taxed in Cyprus?

  • Living in Cyprus for at least 183 days in the tax year? You have to pay tax on the income earned in and outside Cyprus (worldwide income).
  • Living in Cyprus for less than 183 days in the tax year? You have to pay tax only on income earned in Cyprus.
  • Income from other EU countries? Make sure you never pay tax twice on the same income.

How much will you pay?

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

Income tax rates for 2016 (2017 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 a tax return by 30 April (if submitted manually), or 31 July (if submitted electronically through TAXISnet) in the following tax year.

How to appeal/complain

If you disagree with your tax assessment, you can appealΕλληνικά 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 returnpdfΕλληνικά

I'm self-employed

Which income will be taxed in Cyprus?

  • Living in Cyprus for at least 183 days in the tax year? You have to pay tax on the income earned in and outside Cyprus (worldwide income).
  • Living in Cyprus for less than 183 days in the tax year? You have to pay tax only on income earned in Cyprus.
  • Income from other EU countries? Make sure you never pay tax twice on the same income.

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 2016 (2017 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 by 30 June (if submitted manually) or by 30 September (if submitted electronically 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 appealΕλληνικά 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

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