articles about Taxation in Cyprus

Income Tax for Individuals in Cyprus

Basis of taxation All Cyprus tax resident individuals are taxed on all chargeable income accrued or derived from all sources in Cyprus and abroad. Individuals who are not tax residents of Cyprus are taxed on certain income accrued or derived from sources in Cyprus.  An individual is tax resident in Cyprus if he spends in Cyprus more than 183 days in any one calendar year. Days in and out of Cyprus are calculated as follows: the day of departure from Cyprus counts as a day of residence outside Cyprus the day of arrival in Cyprus counts as a day of resi... Read More

Corporation Tax for Cyprus based companies

All Cyprus tax resident companies are taxed on their income accrued or derived from all chargeable sources in Cyprus and abroad. A non- Cyprus tax resident company is taxed on income accrued or derived from a business activity which is carried out through a permanent establishment in Cyprus and on certain income arising from sources in Cyprus. A company is a resident of Cyprus if it is managed and controlled in Cyprus. Foreign taxes paid can be credited against the corporation tax liability. Corporate tax rate Tax rate % The corporation tax rate for all com... Read More

Value Added Tax (VAT) in Cyprus

VAT is imposed on the supply of goods and provision services in Cyprus, as well as on the acquisition of goods from the European Union (EU) and the importation of goods into Cyprus. Taxable persons charge VAT on their taxable supplies (output tax) and are charged with VAT on goods or services which they receive (input tax). If output tax in a VAT period exceeds total input tax, a payment has to be made to the state. If input tax exceeds output tax, the excess input tax is carried forward as a credit and set off against future output VAT.  Immediate refund of excess inpu... Read More

Capital Gains Tax in Cyprus

Capital Gains Tax in Cyprus is imposed on gains from disposal of immovable property situated in the Republic including shares of companies not listed on a recognised Stock Exchange which own immovable property situated in the Republic, at the rate of 20%.In computing the capital gain the value of the immovable property as at 1 January 1980 (or cost if the date of acquisition is later), the cost of any additions after 1 January 1980 or the date of acquisition if later, any expenditure incurred for the production of the gain and the indexation allowance, are deducted from the sale proceeds. The... Read More

Immovable Property Tax

Immovable Property Tax is imposed on the market value as at 1 January 1980 and applies to immovable property located in Cyprus owned by the taxpayer on 1 January of each year. This tax is payable on 30 September each year. Physical and legal persons are both liable to Immovable Property Tax.  As from 1 January 2013, the bands and rates for Immovable Property Tax for properties situated in Cyprus have been revised as per the table below which apply per owner, not per property. Property owners whose property has a total value of €12.500 or less (using values of 1.1.198... Read More

Transfer Fees for Property in Cyprus

Transfer fees in Cyprus These are paid on transfers of immovable property and are calculated on the market value of the property as estimated by the Land Registry department. Market Value €    Rate      Fee €   Cumulative Fee 0 - 85.000              3%       2.550        2.550 85.000 - 170.000   5%      4.250        6.800 170.000 and over   8%  Transfer fees paid on the transfer of property to a ... Read More

Cyprus Tax Facts for Individuals and Businesses

Cyprus Tax Facts for Individuals and Businesses Source: Deloitte Cyprus... Read More