Cypriot tax
Tax in Cyprus for Expats
Cyprus has a progressive tax system, with tax rates increasing as income levels rise. Expats living and working in Cyprus are subject to the same taxes as Cypriot citizens.
The standard rate of income tax in Cyprus is 20%, but it can range from 20% to 35% depending on the individual's income level.
In addition to income tax, expats may also be required to pay social security contributions and property taxes. It is important for expats to understand their tax obligations and seek professional advice if necessary to ensure they are in compliance with Cypriot tax laws.
Cyprus Tax by Year
View more detailed information on Cyprus tax by the tax year.
Income Tax Rates in Cyprus for 2024
Income tax
| Income (€EUR) | Tax Rate % |
|---|---|
| 0 - 19,500 | 0% |
| 19,501 - 28,000 | 20% |
| 28,001 - 36,300 | 25% |
| 36,301 - 60,000 | 30% |
| 60,000 + | 35% |
Special Foreign Pension Tax
If you have an overseas pension you can elect to have it taxed at a special 5% rate on all your pension income above €3420.
Read our example on whether you should pay the special foreign tax or the income tax rate.
| Income (€EUR) | Tax Rate % |
|---|---|
| 0 - 3,420 | 0% |
| 3421 + | 5% |
Tax Residency in Cyprus
Residency in Cyprus refers to an individual's legal status as a resident of the country.
In order to be considered a resident of Cyprus, an individual must meet certain criteria, such as living in the country for at least 183 days per year.
Additionally you can become tax resident in Cyprus for as little as 60 days in the country, if you meet specific criteria, making it an ideal low-tax base for contractors & businesses.
Residency in Cyprus can have significant implications for an individual's taxes and access to public services. For example, residents of Cyprus are subject to the country's tax laws and are entitled to access certain public services, such as healthcare and education.
Non-residents, on the other hand, may be subject to different tax rules and may not have the same access to public services. It is important for individuals to understand the requirements for residency in Cyprus and the consequences of obtaining or losing residency status.
Tax Registration in Cyprus
Cyprus is known for its favourable tax system, making it an attractive destination for individuals and businesses alike. However, to take advantage of this tax system, it is essential to register for tax in Cyprus.
Get in touch
For help and guidance, including our range of tax services, contact us.
FAQ
Do I need to submit a tax return in Cyprus?
If you have any income at all you need to submit a tax return in Cyprus. You can find more information here.
Should I pay the normal tax rate or special rate on my foreign pensions?
Pay the rate which results in the lowest tax, view our examples here.
Should I register for tax in Cyprus
If you spend more than 183 days in Cyprus per year you are a Cyprus tax resident and should register. There are also other criteria & scenarios that mean you should register for Cyprus tax.