Taxes in Cyprus.
Personal taxes.
People are taxed in Cyprus according to their individual resident status.
Permanent residents (people who spend over 183 days in the country for any one period) are taxed on the following incomes…
• Worldwide employment income
• Pensions from any past employment in Cyprus
• Income from any business in Cyprus.
Local taxes.
Same as council tax in the UK. It is charged between CYP 30.00-100.00 per calendar year.
Income Tax
.
The Cyprus government is giving incentives to try and keep all income tax levels on expats as low as possible.
All non residents are taxed the same rates as above but only on certain incomes these incomes include…
• Any business income from Cyprus
• Income from past employment in Cyprus
• Income from any pensions from work in Cyprus
All non-residents are exempt on interest and dividend income received from abroad.
Communal expenses
If the property you have purchased is in a development with communal facilities you will have to pay communal expenses.
These can vary anywhere between CYP 150.00 – 350.00 every 6 months.
Capital gains tax (CGT)
Capital gains tax is at a rate of 20% and this is levied on gains arising from the disposal of immovable property.
Htrer is an allowance of CYP 10,000 to each owner of the property; if the property is under joint ownership then this would become a CYP 20,000 allowance.
Inheritance tax.
The Cypriot government abolished inheritance tax on all moveable and immovable property in Cyprus.
VAT
VAT is currently charged at 15%