Cyprus Tax guide

1. Personal Income Tax

If you are a resident of Cyprus you are eligible for Cyprus tax on all income accrued or derived both within and outside Cyprus. Non-residents are eligible for Cyprus tax only on income accrued or derived from sources within Cyprus. You will be regarded a resident of Cyprus if you are physically present in Cyprus for more than 183 days in any one tax year and thus liable for Cyprus income tax on you worldwide income.

Property income derived from renting your Cyprus property is taxed at standard income Cyprus tax rates. This applies to residents and non-residents. It thus follows that property income is to be included in your annual Cyprus tax declaration. You are however allowed the following dedications:

- 20% of the total rental income from renting your property and
- 3% for depreciation.

Residents are liable to pay a 3% Special Contribution for Defence calculated on 75% of the total rental income received.

Consider the following tables and view a simple example on how the above is calculated on a rental income of € 25 620.

1.1. Cyprus Tax Rates

1.2. Tax Exemptions

The following are exempt from income tax:

* Under certain Conditions

1. 3. Tax Deductions

Deduction for expenditure for the maintenance of a building in respect of which there is in force a Preservation Order.