2023-Cyprus-Country-Report
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CYPRUSCOUNTRY REPORT <strong>2023</strong><br />
PERSONAL INCOME TAX<br />
BASIS OF TAXATION<br />
All <strong>Cyprus</strong> tax residents are taxed in <strong>Cyprus</strong> on all income accrued or derived from<br />
all sources in <strong>Cyprus</strong> and abroad such as employment income, rental income etc. (i.e.<br />
worldwide income).<br />
Individuals who are not tax residents of <strong>Cyprus</strong> are taxed on income accrued or<br />
derived from sources in <strong>Cyprus</strong>.<br />
An individual is tax resident in <strong>Cyprus</strong> if one of the following conditions are met:<br />
• he/she spends physically in <strong>Cyprus</strong> over 183 days during the relevant tax year, or;<br />
• he/she does not remain in any other state for one or more periods which altogether<br />
exceed 183 days in the same tax year and he/she is not tax resident in any other<br />
state for the same tax year and all the following conditions are cumulatively met:<br />
• he/she should remain in <strong>Cyprus</strong> for at least 60 days during the tax year<br />
• he/she should pursue any business in <strong>Cyprus</strong> and/or to work in <strong>Cyprus</strong> and/or to<br />
be a director in a company tax resident in <strong>Cyprus</strong> at any time during the tax year<br />
• he/she should maintain a permanent residence in <strong>Cyprus</strong>, which can be either<br />
owned or rented by him/her<br />
The personal income tax rates that apply to individuals are as follows:<br />
Taxable Income Tax Rate (%) Tax (€) Accumulated Tax (€)<br />
0-19,500 0 0 0<br />
19,501- 28,000 20 1,700 1,700<br />
28,001-36,300 25 2,075 3,775<br />
36,301-60,000 30 7,110 10,885<br />
60,001 and over 35<br />
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