Cyprus is a low tax country and offers a relatively simple tax regime. For most individual’s resident in Cyprus, they will become “tax resident” if they stay in Cyprus for 183 days in any one calendar year.
- Cyprus operates tax on a worldwide basis.
- The Cyprus tax year runs from the 1st January until the 31st December.
- Tax resident individuals will be liable to pay annual, Income Tax, Special Contribution for Defence, and the GESY (National Health) Levy.
- Personal Tax is payable, as a minimum, half yearly, in July and December.
- There are other personal taxes in Cyprus such as immovable property transfer tax and capital gains tax which are applied on the purchase and the sale of immovable property.
- VAT in Cyprus is applied on most goods and services at a rate of 20%.
- All employees and the self employed pay social insurance contributions based upon a percentage of their eligible earnings.
For more information regarding tax and other related issues please click here