Cyprus Tax Facts

The latest Cyprus Tax Facts guide provides a straight-forward, holistic summary of the Cyprus tax system, based on current legislation and tax practices, in relation to the fiscal year 2024.

Cyprus Tax Facts 2023

Welcome to the 2024 Cyprus Tax Facts

We are pleased to present the 2024 edition of Cyprus Tax Facts, providing crucial insights into the latest developments in tax legislation. The dynamic landscape of tax laws continues to evolve rapidly, posing an increased risk for taxpayers who may find themselves unprepared. Considering these changes, a comprehensive and up-to-date guide on Cyprus' Tax and Legal code becomes indispensable.

In recent years, we witnessed significant modifications, including the implementation of Cyprus' Recovery and Resilience Plan, Transfer Pricing rules aligned with the OECD, the introduction of new environmentally focused taxes, a 120% Research and Development deduction for companies, and updates to the 20% and 50% personal income tax exemptions. Looking ahead into 2024, we anticipate further amendments and greater clarity surrounding the implementation of BEPS 2.0.

Our Tax Guide embodies countless hours of meticulous tax research, all conducted with our clients' needs in mind. However, it should not be considered a comprehensive explanation of the tax matters discussed herein and is subject to changes in the law and other applicable regulations. Readers are strongly advised to consult our EY professionals for more detailed information.

To stay abreast of the latest developments, we encourage you to subscribe to our monthly TaxLegi Newsletter and Alerts, providing timely updates on key developments. Simply register for Tax Updates below to register in our contact database and ensure you receive the most relevant and current information.

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  • Resident of Cyprus (Individuals)

    An individual who stays in Cyprus for a period or periods exceeding in aggregate 183 days in the year of assessment.

    In addition, the definition of tax resident includes an individual who does not stay in any other state for one or more periods exceeding in aggregate 183 days in the same tax year and who is not considered a resident for tax purposes in any other state in the same tax year, provided that the individual cumulatively meets the following criteria:

    • Stays in the Republic for at least 60 days in the year of assessment; and
    • Exercises any business in the Republic and/or is employed in the Republic and/or holds an office for a person tax resident in the Republic at any time during the year of assessment; and
    • Maintains a permanent residence in the Republic which is owned or rented by him.
  • Tax rates for individuals

    Taxable income Tax rate Amount of Tax
    € 0 - 19,500 0 %  € 0
    € 19,501 - 28,000 20 % € 1,700
    € 28,001 - 36,300 25 % € 2,075
    € 36,301 - 60,000 30 % € 7,100
    € Over 60,000 35 %  

    For widows’ pensions which exceed the amount of €19.500, taxpayers may elect for these to be taxed at the rate of 20% or added to other sources of the individual’s income and taxed under the above Income Tax rates applicable for individuals.

  • Domiciled in Cyprus

    An individual is considered to be “domiciled in Cyprus” for Special Contribution to the Defence Fund purposes, if such an individual has a domicile of origin as this is defined in the Wills and Succession Law. Nevertheless, the following individuals are not considered to be domiciled in Cyprus:

    • An individual who has obtained and maintained a domicile of choice outside Cyprus in accordance with the Wills and Succession Law, provided that such an individual has not been a tax resident of Cyprus for a period of 20 consecutive years preceding the tax year; or
    • An individual who has not been a tax resident of Cyprus for a period of 20 consecutive years prior to 16 July 2015.

    Notwithstanding the above, an individual who has been a tax resident of Cyprus for at least 17 years out of the 20 years prior to the tax year, will be considered to be “domiciled in Cyprus”.

  • Resident of Cyprus (Company)

    A Company whose management and control is exercised in Cyprus. In addition, as of 31 December 2022, a company which is incorporated or registered in Cyprus, and its management and control is exercised outside Cyprus, should be considered resident for tax purposes of Cyprus unless it is a tax resident in another country.

  • Tax rate for companies

    Corporate tax rate  12,5 %  

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