Cyprus Tax System

About Cyprus

Cyprus is an independent sovereign republic located in the extreme northeast corner of the Mediterranean Sea.

Cyprus Tax System

The tax reform that took effect on 1 January 2003 introduced major changes to the Cyprus Taxation system.

Personal Income Tax

All Cyprus Tax residents are taxed on all income accrued or derived from all sources in Cyprus and abroad.

Corporation Tax

All companies tax resident of Cyprus are taxed on their income accrued or derived from all sources in Cyprus and abroad.

Annual wear and tear allowances on fixed assets

percentage on the cost of acquisition are deducted from the chargeable income.

Special type of companies

The new Merchant Shipping Legislation fully approved by the EU and in force as from 1 January 2010.

Special Contribution For Defence

Special contribution for defence is imposed on income earned by Cyprus tax residents.

Social Insurance

The contributions of self-employed persons are 14,6% (12,6% for 2013) of income.

Capital Gains Tax

Capital Gains Tax is imposed (when the disposal is not subject to income tax).

Transfer fees by the Department of Land and Surveys

The fees charged by the Department of Land and Surveys.

Immovable Property Tax

Immovable Property Tax is imposed on the market value as at 1 January 1980.

Estate Duty

Estate duty has been abolished since 1 January 2000.

Stamp Duty

Transactions which fall within the scope of reorganizations.

Capital Duty

Upon incorporation of the company and Upon subsequent increases.

Double Tax Treaties

summary of the withholding taxes provided by the double tax treaties.


VAT is imposed on the supply of goods and services in Cyprus.


A trust is established by an individual “the settlor” and is a means whereby property “the Trust Property”

Tax Diary

Submission of Income Tax Return by individuals (deadline extended by 3 months in case of electronic submission)