Frequently Asked Questions
What taxes do I pay if I own and sell different types of securities (shares, bonds, debentures etc.)?
A: An individual who is tax resident in Cyprus is taxed at 0% on profit arising on the disposal of any securities.
What taxes do I pay if I own a property in Cyprus?
The ownership of a property in Cyprus does not result in any property taxes. In the case where the property is rented out, wear and tear of the property as well as the interest expense on borrowing obtained to buy the property are tax deductible for personal income tax purposes.
What taxes do I pay from inherited assets?
The executor/ administrator of the estate of the deceased does not pay any taxes for the assets inherited.
What is the corporation tax rate in Cyprus?
The standard corporation tax rate in Cyprus is 15% (following the recent tax reform, increased from 12.5%).
However, Cyprus offers attractive tax incentives. For example, under its Intellectual Property (IP) Box regime, up to 80% of qualifying profits derived from qualifying IP assets can be treated as a tax-deductible expense.What taxes do I pay if I receive a lump sum (also called “efapax”) when I retire in Cyprus?
Lump sum received by way of retiring gratuity, commutation of pension or compensation for death or injuries is exempt from any form of tax.
What taxes do I pay if I receive pension from abroad?
0% up to €3.420/year and 5% flat rate on amounts over €3.420/year.
What taxes do I pay if I sell any immovable property owned in Cyprus?
20% tax (Capital Gains Tax) is imposed on the gains arising on the disposal of immovable property. Lifetime exemption amounting to €150,000 is deducted from the taxable capital gain on the disposal of private principal residence. (Note: properties sold abroad are not taxed in Cyprus)
Can I set up a company with Permanent Residence (PR)?
Yes.
Who is considered to be a Cyprus tax resident?
Tax resident in Cyprus is considered an individual who:
a) spends more than 183 days in Cyprus in any one calendar year or;
b) spends minimum 60 days in Cyprus and must not be tax resident in any other country (minor other rules apply).Do I need to pay all the money for the property under PR in advance?
No, stage payments apply according to construction progress (Note: for the application to start the first €210.000+VAT needs to be paid).
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