Cyprus has a variety of taxes which are all listed below.
- Cyprus Corporate Tax:
The corporate tax is a huge chapter for Cyprus since it has been a big incentive for offshore companies to invest in Cyprus due to the lowest corporate tax available in the world (10%). The benefits of the corporate taxation are not limited to the low tax but in various aspects which will be shown in more detail in one of our blog posts.
- Cyprus Capital Gains Tax:
The capital gains tax is the tax that applies when you sell a property in Cyprus. However there are various exemptions as well as deductions according to the owner status and location of the residence.
- Cyprus Income Tax:
This tax applies to any worker Cypriot citizen or not who is employed at any company or work in the island of Cyprus. This tax varies according to the income. In simpler terms, the more you earn by working in Cyprus the more tax you pay.
- VAT Tax:
VAT is charged on every supply of goods or services at the standard rate of eighteen per cent (18%). However there are exceptions in products that benefit from lower taxation like pharmaceutical products, bottled water, juices etc.
- Immovable Property Tax
Immovable Property Tax is imposed on the market value as at 1 January 1980 and applies to the immovable property owned by the taxpayer on 1 January of each year. This tax is payable on 30 September each year. Physical and legal persons are both liable to Immovable Property Tax.
- Immovable Property Transfer Tax
The immovable property transfer tax is the tax paid when transferring a property to another individual.
No immovable property transfer fees are payable in the case of reorganization of companies.
In the situation of transferring of immovable property to a family company and provided the shareholders remain members of the same family, then after the passing of 5 years the immovable property transfer fees are being refunded.
- Special Defense Contribution Tax
The Special Contribution for Defence tax is another form of taxation targeting specific types of income and applies to Cyprus tax resident persons only.
- Double Tax Treaties
Cyprus has a very extensive double tax treaty network with some 45 treaties in place, including agreements with the UK, Mauritius, India, Russia, China and the USA, and dozens under negotiation, awaiting signature or ratification, or under consideration to initiate negotiations.
Please note that for Cyprus Passport Holders there is no personal tax.
The property tax varies from 200 to 300 Euro annually according to the property owned.
The taxes that apply for Cyprus passport holders are exactly the same as for Cypriot citizens excluding the fact that locals need to pay the personal tax which varies according to their income.