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tax

Individual Income Tax

Where an individual is a resident in the Republic, tax is imposed on income accruing or arising from sources both within and outside the Republic.

Where an individual is not a resident in the Republic, tax is imposed on income accruing or arising only from sources within the Republic.

An individual is considered to be a resident if a presence in the Republic is established for a period exceeding 183 days in a tax year.

TAX RATES

Taxable Income €

Tax Rate %

0 - 19,500

0

19,501 - 28,000

20

28,000 - 36,300

25

36,301 - 60,000

30

60,001 and over

35

 

Tax is assessed on the net income on a current year basis. The income tax year in Cyprus is the calendar year. An estimate of the tax due can be made by 1st August in the year of assessment and the estimated tax can be paid in two instalments, on the 31st July and 31st December. If the estimation and pre-payment is not made, the individual is subject to an additional 10% charge on the tax liability.

Special Contribution on gross monthly salaries/pensions on Private Sector Employee's

Each employee, self-employed, or person operating in the private sector receiving a pension, shall pay a special contribution to the Republic . The contribution is a percentage levied on the gross earnings as shown in the table below.

 

Monthly Salary or Pension

% of Special Contribution

€0 - €1,500

0%

€1,501 - €2,500

2,5% (min €10)

€2,501 - €3,500

3,0%

€3,501 and above

3,5%

 

The Special Contribution continues to be born equally by the employer and the employee.