Company tax rate 10%

• Exempt- Income from Dividends
• Exempt- Profit from the sale of shares/titles
• Exempt Profit from sale of properties situated abroad
• Exempt-Certain categories of profits
• Exempt-For some categories of profits from abroad
• Interest received, special treatment for non-residents

Personal Tax Rates

• Non-taxable amount-€19,500
• Between €19,501-28,000-Tax rate at 20%
• Between €28,001-36,300-Tax rate at 25%
• Over €36,301 tax rate at 30%

Defense Tax

Defense tax is levied only for Cyprus residents, and Cyprus tax residents as follows:-

• Dividends at 15%
• Interest at 10%
• Interest on Government Bonds at 3%
• Rents at 3%

Capital Gain Tax

It is levied at the rate of 20% on gains arising from the disposal of immovable property. As a general rule, the gain is the difference between the sales price, less the original cost of the property, capital improvements and transaction costs of the sale.  Generous exemptions also in place, e.g. net capital gains up to €85,430 earned from the disposal of your residence, not taxable. Any other exemption up to €17,086 gains.

Inheritance Tax

On the 1st January 2000, Law 74(1)/200) came into force. This law abolished all obligations to pay inheritance tax regardless of size of the estate. The fact that there is no Inheritance Tax to pay under Cyprus law is encouraging to invest in the island.

VAT

The rate of VAT in Cyprus is currently 15%.

Vat on property is chargeable as from 1st May 2004.  A rate of 15% vat is charged on all new properties.  For projects, Vat is paid on the selling price of the property.  Land & building cannot be separated.

Vat is exempt in property where an application for planning was submitted before 1 May 2004.

• Lower rates of 8% VAT for restaurants, hotels permission

• Lower rates of 5% VAT for sales of fertilizers, agricultural, water bottling and many others

• Rental agreement for properties

• Financial transactions (some are taxable)

• Medical and hospital treatment

• Postal services

• Insurance services

• Sales of buildings when application for planning, permissions was deposited before 1 May 2004

Social insurance

Employed and self-employed persons aged 18 to 65.

Obligatory payment of Social Insurance for all Cypriots and residents in Cyprus. 

Source of Funds

Insured person
Social insurance: 6.8% of earnings; voluntary contributors, 10% of earnings.

Self-employed person
Social insurance: 12.6% of earnings.

Employer
Social insurance: 6.8% of payroll.

Who is entitled to old pension out of the Social Insurance Scheme?

Pension is payable to an insured person who completes the pension able age, which is the age of 63, and satisfies the relevant contribution conditions with a minimum contribution of 3 years.

Land Registry Fees:

To acquire the title deeds of your property, the purchaser must pay Property Transfer Tax fees to the Government.  These fees are paid once only to the Land Registry office in the district of your property location.  This is based on the sale price the purchaser bears and is calculated as follows: