PUBLICATIONS 

Taxation of Individuals in Cyprus

Cyprus tax resident individuals are liable to income tax on their worldwide income.
Residence requires presence in Cyprus of more than 183 days per calendar year. Cyprus non-tax residents are liable to income tax for income arising from sources in Cyprus. The first €19,500 is tax free and above this amount the income tax rates are progressive ranging from 20% to a maximum of 35% for chargeable income above €60,000.

Dividends:
o Dividends paid to a resident individual are subject to a Special Contribution for Defence (SCD) at a rate of 17% (20% in 2013) which is withheld at source.
o Dividends paid to a non-resident individual are not liable to SCD

Interest:
o Interest paid to a non-resident individual is not subject to any tax.
o Interest paid to a resident individual is subject to SCD at a rate of 30% which is withheld at source.

Rent:
o Rent paid to a Cyprus tax resident, is subject to SCD at a rate of 3% on 75% of the rental income. Note that Rental income is also subject to personal income tax.

Transfer fees on immovable property:
o Transfer fees ranging from 3% to 8% calculated on the market value of the property as estimated by the Land Registry.

Other taxes:
o Annual real property tax on 1980 values increasing from 0.6% to 1.9%.
o Social Security.
o Stamp duty on contract relating to property or actions performed in Cyprus. (Maximum payable is €20,000)

This article is given for information purposes only and it does not constitute legal advice. For further information and advice please contact Mrs Maria Papandreou at office@dhadjinestoros.com.