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What do you need to know before the submission of tax return ? What are the deductible expenses?

What do you need to know before the tax return submission? What are the deductible expenses when calculating the taxable income?

The due date when the Cyprus Tax payer will have to prepare and submit the Tax Return form is not far (31/07/2019), so the tax advisors of KTC Business Consultants have summed up the most important deductible expenses of the personal tax in Cyprus. Every tax payer in Cyprus is important to know which expenses can be included on the tax return form and deducted from his personal tax.

We wish to remind you once again that the tax return form can only be submitted online by yourself, but our firm can also assist you on this, in case you need it.

Below we state some of the most important deductible expenses for tax return purposes in Cyprus.


Expenses incurred wholly and exclusively for the acquisition of income are deductible in calculating taxable income.

Fixed assets.

In the case where the tax payer is letting buildings, he is subject to 20% discount on the total rental income.

The whole amount of interest is deducted (in case of a loan for the respective property) if the tax payer rents the property to a third party.

Amount of expenditure for the maintenance of buildings under preservation order is deducted, depending on the size of the building.



The whole amount of donations to approved charities.

  • Up to €300 is deducted without the need of receipts.
  • For donations more than €300 the deduction is valid with the submission of receipts and only in the case of approved charitable organizations.

Up to €50.000 deduction in case of donation to political parties.



Subscriptions of the tax payer to trade unions or professional bodies are excluded.


Intellectual property.

Up to 80% deduction on profits arising from the exploitation of intellectual property rights.

Up to the whole amount on profits arising from the disposal of intellectual property rights.



The whole amount is deducted on expenditure for the purpose of scientific research.



Up to whole amount that has been invested in an innovative Small-Medium size business.


Wear and tear.

Person owning a business is allowed to deduct wear and tear allowances from his/her taxable income.

As soon as you are ready to submit your tax return form you should collect all the relevant documentation proofing the above expenses. In case you need more information on how to submit the tax return form electronically you may visit this link. In other case, have in mind that our tax advisors can arrange for you the tax return submission. Please feel free to ask for help.