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Physical Persons

Tax rates

Tax rates for individuals are as follows:

Taxable income   Tax rates
0 – €19.500   0%
€19.501 – €28.000   20%
€28.001 – €36.300   25%
€36.301 – €60.000   30%
€60.001 and above   35%

In the case of company director or an individual shareholder, or his/her spouse, or any relative up to second degree, receiving a loan or financial assistance (cash withdrawal) from the company, then that person is deemed to have obtained a monthly benefit in kind in equal to 9% p.a. on the above facility. This amount will be included in the individual’s income subject to Income Tax in accordance with Income Tax Law.
 

Personal allowances

The following personal allowances are deducted from the taxable income:
  • Social insurance contributions
  • Provident fund contributions
  • Life insurance
  • Donations up to €256

Exemptions

  • All the interest income earned by an individual.
    The interest earned by an individual from the usual business activities is not considered as interest but as profit.
     
  • Dividends received both from Cyprus and from abroad.
     
  • Profit from the sale of shares.
    The exemption applies both for the shares of private companies as well as the shares of public companies, provided that such profit is of an income nature.
     
  • The remuneration from the provision of salaried services outside Cyprus for a total period in the tax year exceeding 90 days in an employer other than a Cyprus resident or in a permanent establishment of an employer who is resident in Cyprus.
     
  • 20% of the remuneration from every employment exercised in Cyprus from an individual who is not resident in Cyprus prior the commencement of his employment in Cyprus, or £5.000, whichever is lower.
     
  • 50% of any remuneration earned by a non resident person taking up residence in Cyprus for the purpose of being employed by a Cyprus employer and whose annual income from employment exceeds €100.000 per annum. The exemption is given for 5 years starting from the year of commencement of the employment in Cyprus.
 
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