cyprus taxPersonal Tax

The benefits of the Cyprus tax resident.

The Cyprus tax resident is taxed on the personal income arising from local sources or abroad sources. The non-Cyprus tax resident is taxed on specific income arising from local sources only. Cyprus has an attractive personal tax regime for tax residents.

 

See below the table on the rate applied in each income case.

 

no deduction

 

Cyprus tax applies some exemptions on the income tax for physical persons thus making the country an attractive destination for professionals and entrepreneurs willing to operate from Cyprus.

Some of the most important exemptions on the income of physical persons are:

  • Full exemptions on the dividends
  • When the yearly income is more than €100.000 and before the employment the person was not Cyprus resident, a 50% tax exemption is applied on his income.
  • Full exemption on the salaried services taking place out of Cyprus during a period of more than 90 days for an employer of abroad or Cyprus tax resident with a permanent establishment abroad.
  • Whole exemption on profits arising from the sale of deeds. 

In addition, the below are deducted from the income of physical persons.

  • All the donations to non-profits.
  • 20% exemption from rents.
  • Subscriptions to any professional association and unions.
  • The whole losses of the last but also the previous years.