Tax Benefits for Individuals taking up Tax Residence in Cyprus

[sumaiyakhatun26]

As a result of previous tax legislation and the exemption from the Cyprus Special Contribution for Defence Tax (“SDC”), introduced in July 2015, non-domiciliaries benefit from a zero rate of tax on the following sources of income:

interest;
dividends;
capital gains (other than from the sale of immoveable property in Cyprus);
capital sums received from pensions, provident and insurance funds.
The zero tax benefits detailed above are enjoyed even if the income has a iceland mobile database Cyprus source and is remitted to Cyprus.

Other sources of income may also be exempt from tax however we recommend that professional advice is taken.

In addition, there are NO wealth and NO inheritance taxes in Cyprus.

Other Beneficial Features of the Cyprus Tax System for Individuals

Income Tax Reduction for New Residents in Cyprus
Individuals who were not previously resident in Cyprus, take up residence in Cyprus for work purposes, and earn over €55,000 per annum, are entitled to the following tax benefit:

50% of employment income earned in Cyprus is exempt from income tax for a period of 17 years.
Cyprus’ standard income tax rates are:

€0 to €19,500: 0%
€19,501to €28,000: 20%
€28,001to €36,300: 25%
€36,301to €60,000: 30%
Greater than €60,000: 35%
Additional Information

If you require additional information regarding Cyprus Foreign Interest Companies please speak to Charalambos Pittas/ Katrien de Poorter at the Dixcart office in Cyprusto your usual Dixcart contact.