PERSONAL INCOME TAX – CYPRUS
Simplify Your Taxes, Maximize Your Wealth
Tailored personal tax solutions for employees, investors, and global professionals in Cyprus.
At a Glance
| Category | Tax Rate | Filing Deadline | Applies To |
|---|---|---|---|
| Employment & Self-Employment | 0%–35% | 31 July (following year)* | Residents |
| Rental & Investment Income | PIT 0%–35% + SDC (where applicable) | 31 July | Residents & Non-Residents |
| Foreign-sourced passive income (Non-Dom) | Exempt from SDC on dividends & most interest | — | Non-Domiciled Residents |
| Capital Gains on Cyprus immovable property | 20% (transaction-based) | Event-based | All taxpayers |
Statutory due date is 31 July; authorities have granted extensions in some years (e.g., 2024 and 2025 announcements).
Overview
Cyprus applies a progressive, residency-based personal income tax system.
Residents are taxed on worldwide income; non-residents are taxed only on Cyprus-sourced income.
The combination of low progressive rates and the non-Dom regime make Cyprus attractive for internationally mobile professionals.
Income Tax Rates (2025)
| Annual Taxable Income (€) | Rate | Cumulative Tax (€) |
|---|---|---|
| 0 – 19,500 | 0% | 0 |
| 19,501 – 28,000 | 20% | 1,700 |
| 28,001 – 36,300 | 25% | 3,775 |
| 36,301 – 60,000 | 30% | 10,885 |
| 60,000+ | 35% | Progressive |
Residency Rules
| 183-Day Rule | 60-Day Rule |
|---|---|
| Stay ≥183 days in Cyprus within the calendar year | Stay ≥60 days in Cyprus, not resident in any other state, do not reside >183 days elsewhere, maintain a home in Cyprus, and carry on business/employment in Cyprus |
Non-Domiciled Residents (SDC Exemptions)
Non-Dom tax residents are exempt from Special Defence Contribution (SDC) on dividends and most interest.
Rental income bears SDC at 3% on 75% of gross rent (effective 2.25%).
Non-Dom treatment typically applies for up to 17 years.
Key Exemptions & Deductions
| Type | Description | Benefit |
|---|---|---|
| Foreign employment | 50% exemption for employment income above legislated threshold when first employed in Cyprus (tenure-limited) | High |
| Non-dom status | SDC exemption on dividends and most interest; reduced effective SDC on rent | Major |
| Pension income | €3,420 tax-free; excess taxed at 5% (alternative calculation may apply) | Moderate |
| Approved donations | 100% deductible if to approved charities | Moderate |
| Social Insurance, GESY, provident/approved funds | Deductible per law | Moderate |
Thresholds and qualification criteria apply per annual decrees and circulars.
Other Notable Points
- Capital Gains Tax: 20% on gains from Cyprus immovable property (specific exemptions and indexation rules may apply).
- No wealth or inheritance tax.
- Employee contributions: Social Insurance 8.8% (with annual insurable cap); GESY 2.65%.
Compliance Calendar (Individuals)
| Filing / Payment | Deadline | Platform |
|---|---|---|
| Annual Income Tax Return (Form T.D.1) | 31 July (following year) | TAXISnet |
| Final payment via self-assessment | 31 July (following year) | JCCSmart / Bank |
| Provisional Tax (if applicable) | 31 July & 31 December | TAXISnet |
In recent years, the authorities have issued extensions (e.g., to October 31, 2024; to September 30, 2025).
Why Clients Choose Our Firm
- Resident and non-dom structuring and compliance
- Treaty utilization and dual-residency coordination
- Online TAXISnet filings and year-round advisory
- Discreet, bilingual service (Greek/English)