Tax in Cyprus

the place for international tax.

Tax in Cyprus

Cyprus tax regime has always been the reason organizations from all around the world choose Cyprus. The numerous advantages, deductions and exemptions offered, place Cyprus’s Tax regime as one of the most attractive and competitive in the world.

The country as a European member since 2004 gives the organizations the opportunity to operate under a secure legal framework and banking system, but at the same time protecting entrepreneurship and supporting growth.

Personal Tax.

Cyprus tax residents (individuals) enjoy the benefits the low tax rating according to their income, with 0% tax on yearly income up to €19,500. In addition, tax deductions and many other benefits are available to individuals, professionals or entrepreneurs willing to relocate in Cyprus.

An individual who spends more than 183 days in Cyprus in a calendar year is considered a Cyprus tax resident. Days in and out of the Cyprus Republic are calculated as follows:

 
  • The day of departing out of Cyprus is considered a day out of the republic
  • The day of arrival in Cyprus in considered a day within the republic
  • Arriving and departing out of the Cyprus in the same day counts as one day of residence in Cyprus
  • Departing and returning in Cyprus the same day counts as a day out of the republic
  • Foreign taxes paid can be credited against the personal income tax liability

A Cyprus tax resident is taxed on all the collected income from sources within or out of Cyprus. A non-Cyprus resident is taxed on certain income collected from sources in Cyprus.

Cyprus Corporate Tax.

The corporate tax rate of 12.5% is a huge advantage for any corporation. Enterprises that and use Cyprus as a base for their operations and have a registered office in the country, are considered tax residents of Cyprus. In addition to the corporate tax rate, companies enjoy many other deductions and exemptions.

The Cyprus corporate tax regime, in addition to the low tax rate offers tax exemptions, deductions for expenses and tax loses relief. Below you will find all the advantages a Cyprus company can benefited.

A Cyprus (tax) resident company is taxed on the income accrued or derived from sources in Cyprus and abroad. A non-Cyprus resident company is taxed on the income accrued or derived only from sources in Cyprus

Tax residency.

Legal entities are considered tax residents of Cyprus if the management and control of the activities are exercised via the republic of Cyprus.

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