Cyprus Tax Facts

Company Law

The first step in order to set up a company is to send to the Registrar of companies an application for name approval. The name must not be similar with the name of an existing company and on the application you have to declare what the trade of the business...

Tax on Immovable Property

The immovable property Tax is imposed on the market value of the immovable property as of 1st of January 1980 and applies on the immovable property of the taxpayer on 1st of January each calendar year.   The bands and rates have been changed recently...

Trusts

A trust is established by an individual and is a means whereby property is held by one or more persons (Trustees) for the benefit of another or others (Beneficiaries). In law the Trustees are the owners of the trust property although they not are deal...

Value Added Tax (VAT)

Value Added Tax is an indirect tax which is imposed on goods and services at each stage of production, starting from raw materials to final product. VAT is levied on the value additions at different stages of production. Vat applies to a supply of goods...

Tax for Individuals

Taxation of Individuals depends on their resident status. CyprusTax resident is the individual who is resident more than 183 days in a year of assessment, in the Republic.  Tax Residents are taxed on their worldwide income. On the other hand Non ...

Corporation Tax

Companies’ taxation also depends on their residential status. A company is considered to be a Tax Resident if it’s managed and control in Cyprus.  While the tax law doesn’t give a definition about managed and control, it’s generally accepted that it’s...

Capital Gains Tax

The rate of Capital Gains Tax is 20% on profits obtained from the sale of immovable property situated in Cyprus, after providing for an increase indexation payment. The capital gains that are obtained from the sale of immovable property situated in a...

Social Insurance Contributions and Deductions

From 1stof January 2014 the Social Insurance contributions and deductions are as follows: Employees   Categories Holiday Fund % Social Insurance Fund% Social Cohesion Fund % Redundancy Fund% Industrial ...

Tax Diary - Tax payments

Tax Diary 2014 At the end of each month the following payments must be made Payment of PAYE tax and Special Contribution that is deducted from employees’ salary must be paid to the income tax at the end of the following month. The payment i...