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Taxes in Cyprus

In a country like Cyprus, taxation is built on the principle of loyal attitude to both legal entities and to individuals. However, loyalty to the state applies only to those who accept and promptly comply with the conditions for the preparation and filing tax returns.

In cases of delinquency, with the defaulter may be charged penalties, Cyprus their size is regulated depending on the term of the debt and is usually 10% APR for the repayment of the debt, plus an additional 5% over the past full months of delay.

The main taxes for businesses include:

    • Corporate income tax resident company of Cyprus - its rate is 12,5%.
    • Property tax - the tax rate is determined by the value of the property. For example, if the object is worth to 170 680 euro, such properties are not taxed in the other cases the rate may be 2,5%, 3,5% and 4%.
    • Value added tax - in most cases, the tax rate is 15%, and it shall be paid only if the volume of sales of goods and services in Cyprus is carried out more than $ 15 600 euros. However, there are exceptions, which provide tax breaks to 8% for companies representing the restaurant business to 5% for companies selling pet food, pharmaceutical products, products for s / x area for disabled items, newspapers, books and some others. VAT is not paid by firms that provide postal, financial, insurance, and educational services.
    • Taxes in Cyprus paid on capital gains (for example, after the sale of real estate) - rate is 20%.
    • Tax on share capital - calculated at 0,6%.
    • Defense tax - the rate depends on the type of income, which belongs to the income and may be 2,25%, 10% or 15%.


      Individuals resident in Cyprus mandatory pay income tax, which is installed on all income derived by a resident within the country and abroad. From this tax exempt residents whose total annual income is less 19 500 euros. In other cases, the tax rate, depending on the amount of income can be 20%, 25% or 30%. Separately payable taxes on foreign pension bet in this case is more 5%. In the taxable income of resident individuals not included dividends, medical insurance benefits, death benefits, as well as some additional benefits.

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