The Tax System

An EU citizen has to contact the Department of Inland Revenue in order to get a Taxpayer's Identification Code. He must present his passport and also will have to fill in Form I.R. 163A.

Tax liability is based on the principle of residence. According to the Income tax Law, an individual is considered to be resident in Cyprus for tax purposes if he resides therein for a period or more which, in aggregate exceed 183 days in the same tax year. Tax residents in Cyprus are taxed in respect of their worldwide income, while non- tax residents are taxed in respect of Cyprus source income only. Non-tax residents having a permanent establishment in Cyprus may elect, if it is to their benefit, to be taxed in accordance with the provisions applicable to tax residents.

The Income tax Law provides for various exemptions, on condition that certain criteria are satisfied.

Personal income tax:

  • For an income up to €19.500/year …………..….... 0% tax rate
  • For an income up to €19.501-€28.000/year ..………... 20% tax rate
  • For an income up to €28.001-€36.300/year ………….. 25% tax rate
  • For an income up to over €36.300/year ………………. 30% tax rate

Tax is deducted monthly from the salary.

For more information:

Tax authorities: Ministry of Finance, Inland Revenue Department
Tel.: +357 22601921
Fax.: +357 22661243
e-mail: svrasida@ird.mof.gov.cy
http://www.mof.gov.cy

Moreover, Income Tax Returns can be submitted electronically, using the TAXISNET system, at the following address:
http://taxisnet.mof.gov.cy