Cyprus: Taxes and Costs
Country Rating » 
In Depth
- Overview
- Rental Yields
- Taxes and Costs
- Tax on Rent (Example)
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Useful Links
- Country Statistics
Directory
Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Price Change 1 yr
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Economic Freedom
- Ec. Freedom 5 yrs
- Competitiveness
- Property Rights Index
- Currency +/- Value
Rental income tax is low to moderate in Cyprus
Effective Tax Rate on Rental Income |
|||
| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | nil | 6.70% | 19.5% |
| Click here to see a worked example | |||
Source:
Disclaimer
|
|||
INDIVIDUAL TAXATION
Non-resident individuals are taxed only on income derived from Cyprus. Married couples are taxed separately.
INCOME TAX
Taxable income is generally the aggregate of all forms of income, less deductible expenses and personal deductions.
INCOME TAX |
|
| TAXABLE INCOME, CP₤ (€) | MARGINAL TAX RATE |
| Up to 10,000 (€17,153) | nil |
| 10,001 – 15,000 (€25,729) | 20% on band over €17,153 |
| 15,001 – 20,000 (€34,305) | 25% on band over €25,729 |
| Over 20,000 (€34,305+) | 30% on all income over €34,305 |
| * Exchange Rate as of 02 October 2007 1€ = 0.582998 CYP Source: Global Property Guide |
|
Rental Income Tax
Income earned through renting out property is taxable at the normal income tax rates, but some specific deductions are applicable. The taxable amount for rental income is computed as rental income less a 20% exemption. The appropriate rate is then applied.
Special Contribution for Defence
The rates for this tax vary according to which type of income it is being levied on. For rental income, 25% of the gross rental income is deducted first before the 3% rate for the contribution is applied.
CAPITAL GAINS TAX
Capital gains from the sale of immovable property are subject to 20% Capital Gains Tax. Taxable capital gain is computed as gross selling price less acquisition costs and improvement costs. However, there is a cumulative life-time exemption of CYP50,000 (€85,764) for the sale of a private residence, provided that the owner occupied it for at least 5 years.
VALUE ADDED TAX
First time buyers of properties are subject to the reduced 5% rate of value added tax. Subsequent purchases are taxed at the regular 15% rate. The tax is imposed on the gross selling price of the property.
PROPERTY TAXATION
Real Estate Tax
Real estate tax is levied on the value of properties located in Cyprus. The base of the tax is the estimated market value of the property on January 1, 1980.
REAL ESTATE TAX |
|
| TAXABLE VALUE CYP (€) | TAX RATE |
| Up to 100,000 (€171,527) | nil |
| 100,001 – 250,000(€428,818) | 0.25% on band over €171,527 |
| 250,001 – 500,000(€857,637) | 0.35% on band over €428,818 |
| Over 500,000(€857,637+) | 0.4% on value over €857,637 |
| * Exchange Rate as of 02 October 2007 1€ = 0.582998 CYP | |
CORPORATE TAXATION
INCOME TAX
Corporate income in Cyprus is taxed at 10%. Expenses incurred in the production of income are deductible from gross corporate income.
Capital Gains Tax
The capital gains of a company are subject to 20% tax. Taxable gain is computed as gross selling price less acquisition costs and improvement costs. If the capital gains resulted from the disposal of property due to reorganization, they are not taxable.
Cyprus - more data and information
Post a comment
Subscribe to our Newsletter!
Enter your email address to sign up.
Your Comments
Be the first to comment!