The Cyprus Inland Revenue has confirmed that for 2022 income tax returns applications will be made on-line via TAXISNET, and not the new “Tax For All” portal recently announced.Tax returns will be able to be completed and filed in May and the deadline for submissions will be the end of July.
Please remember that any outstanding tax due should also be paid, including GESY contribution and Special Contribution for Defence.
UK Nationals who hold an S1 medical card are exempt from the payment of GESY contributions. If you do not already have an exemption remember to apply for the 2022 tax year exemption.
Please note that everyone who is resident in Cyprus (for more than 183 days a year) is required to register for tax and complete and submit a tax return. In some cases registration for tax is required after 60 days.
The only exception is, those individuals who earn less than €19,500 and have no other source of income and have received approval for non-submission from their local tax office. If you are in doubt, you should seek guidance from your local tax office.
The rate of tax applied to “foreign pensions” which includes the UK state pension and all UK company, government and private pensions is 5%. The personal allowance is €3,420.
The normal personal allowance for income tax is €19,500.
The normal rates of income tax for all other forms of income are as follows.
Taxable Income €19.501 – €28.000 Rate 20% Amount €1,700
Taxable Income €28.001 – €36.300 Rate 25% Amount €2,075
Taxable Income €36.301 – €60.000 Rate 30% Amount €7,110
Taxable Income €60.000 – €100.000 Rate 35% Amount €14,000
Above – €100.000 Rate 35%
The rate of tax applicable to GESY contributions is 2.65%
The rate of tax applicable to Interest (SCD) is 30%
The rate of tax applicable to Dividends (SCD) is 17%
The rate of tax applicable to rental income (SCD) is 3%, after an allowance of 25% of the rental income.
For individuals who have lived in Cyprus for less than 17 years out of 20 years it is possible to apply for Non Domiciled (in Cyprus) status, which will exempt you from Special Contribution for Defense.
But please note that should you be Non Domiciled in Cyprus you will be UK Domiciled for UK tax. Before making such an election seek professional tax advice.
If you have any concerns or questions about your Cypriot tax speak with your local tax office or a professional tax adviser.