Cyprus - Tax Guide for Freelance Contractors
Welcome to our guide to Taxation in Cyprus. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Cyprus.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Cyprus. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Cyprus.
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Cypriot Income Tax
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Umbrella and Contract Management Services in Cyprus
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Tax residents in Cyprus: are liable to pay tax in Cyprus on their worldwide income,
Non tax residents in Cyprus: are liable to pay tax on Cyprus-source income only.
Individuals will be regarded as tax residents:
- if they stay in Cyprus for a period or periods exceeding 183 days in a tax year.
Married persons are taxed separately.
Taxable income includes:
- business profits,
- income from an office or employment,
- charges or annuities,
- rents, royalties,
- profits from property.
Certain deductions are permissible including:
- donations to approved charities,
- social security contributions,
- life insurance premiums,
- business expenses in most circumstances,
- up to EUR 2'570 per year per child receiving full-time higher education in Cyprus or full-time university education abroad.
Income tax rates for 2012:
- 0.00% on income up to EUR 19’500,
- 20.00% on income from EUR 19’501 up to EUR 28’000,
- 25.00% on income from EUR 28’001 up to EUR 36’300,
- 30.00% on income from EUR 36'301 up to EUR 60'000,
- 35.00% on the excess.
By 30th of April following the tax year.