Tax residence
An individual who spends more than 183 days in the Republic is
a tax resident of the Republic.
An individual can be a tax resident of the Republic even if he/ she spends less than 183 days in the Republic provided that the 60 day rule is satisfied. The 60 day rule is satisfied provided that all of the following conditions
within the same tax year apply:
- Resides at least 60 days in the Republic
- does not spend more than 183 days in any other country
- is considered a tax resident in any other country
- maintains a permanent place of living in the Republic that is either owned or leased
- Carries out a business in the Republic, or/and is employed in Cyprus or/and holds an office in the Republic
Tax rates
Taxable Income Tax Rate
| 0-19500 | 0% |
| 19.501 – 28.000 | 20% |
| 28.001 – 36.300 | 25% |
| 36.301 – 60.000 | 30% |
| Over 60.000 | 35% |
Incomes not subject to Cyprus Income tax
- Dividends
- Interest (unless closely connected with trading activities)
- Lower of 20% of the remuneration or €8.550 Remuneration from any employment exercised in the Republic by an individual who was not resident in the Republic before the commencement of the employment
- 50% of the remuneration Remuneration from any employment exercised in the Republic by an individual who was resident outside the Republic before the commencement of the employment, provided that the annual remuneration of the employee exceeds €100.000
- 90 – days rule – Remuneration from the rendering of salaried services outside the Republic to a non-resident employer or a permanent establishment outside the
Republic of a resident employer, for an aggregate period in the year of assessment of more than 90 days - Profits from isolated transactions
- Profits from the sale of securities
- Rent from a preserved building
- Capital sums paid to individuals out life insurance policies, provident fund and pension funds
Deductible expenses
- 20% of the gross rental income
- Interest paid on loan for the acquisition of the rented property
- Capital allowances granted on the cost of the rented property
- Contributions to trade unions or professional bodies
- Losses of current and previous 5 years
- Donations to approved charities validated through receipt
- Donations to political parties
- Professional books
- Capital allowances on acquisition and use of personal assets as an employee
- Expenses paid not reimbursed by employer (provided such expenses were necessary in performing employment duties)
- Losses of current and previous 5 years