Tax Free Income
- Salary received up to Euro 19,500 (or Euro 21,500 if social insurance contributions are being paid on the whole amount).
- Income from disposal of securities such as shares (say of a banking institution)
Tax Allowable Expenditure
- Social Insurance contributions
- Special contribution for defence and special tax payments
- Expenditure incurred for the acquisition of shares in an innovative business
- Donations to approved charities (supported with receipts)
- Lump sum received by way of retiring gratuity, commutation of pension or compensation for death or injuries
Partially Tax-Free Income
- First Employment in Cyprus
Allows significant tax exemptions so please contact us as soon as you agree your employment with a local company.
Rental income is taxed twice; by the income tax and special defence tax at the rates of 80% and 75% respectively.
- Income from Other Sources
Income from other sources should be added to the salary and then be taxed using the PAYE tax brackets.