Basic Information before the Purchase of Immovable Property in Cyprus Before purchasing immovable property Cyprus, it is important to have the right information to make a well-informed decision. The following information should be considered: Three (3) ways to purchase immovable property Purchase of immovable property with [...]
Individual's Rates of Tax in Cyprus Individuals are subject to the following progressive personal income tax rates: Taxable Income € Tax Rate % Cumulative tax € 0 – 19.500 0 nil 19.501 – 28.000 20 1.700 28.001 – 36.300 25 3.775 36.301 – 60.000 30 [...]
Individual's Tax Residence in Cyprus A physical person is considered tax resident in Cyprus for any calendar year if he/she fulfills any one of the following two tests: Tax Residence tests A. 60 days Physical presence in Cyprus of at least 60 days in [...]
Taxes in relation to property in Cyprus In Cyprus, there are several taxes that may be applicable to the purchase of real estate. These taxes include transfer fees, stamp duty, value-added tax (VAT), and capital gains tax (CGT). Transfer Fees - Payable by the buyer When a property is [...]
Introduction of Transfer Pricing Regulations in Cyprus In June 2022, the Cyprus Parliament approved amendments to the Income Tax Law that introduced detailed Transfer Pricing (TP) requirements into the country's tax legislation. These provisions, which are in line with the recommendations of the OECD's Transfer Pricing Guidelines for Multinational [...]
Stamp Duty Stamp duty is a tax that is imposed on certain legal documents and transactions in Cyprus. The rate of stamp duty varies depending on the type of document or transaction, and examples include the sale of property, the transfer of shares in a company, and the execution [...]
Incentives for Investment in Cypriot Innovative SMEs The Cyprus Income Tax Law includes tax incentives for individuals who are tax residents of Cyprus and invest in innovative small and medium-sized enterprises (SMEs). The incentives, which were originally implemented in 2017 and have been extended multiple times, aim to encourage [...]
General Anti-Abuse Rule (GAAR) in Cyprus The purpose of the general anti-abuse rule (GAAR) is to discourage artificial arrangements and counteract aggressive tax planning not yet been dealt with through specifically targeted provisions (SAARs). It applies from 1 January 2019 and is in line with the European Anti-Tax Avoidance [...]
Notional Interest Deduction Rates On the table below, you can find the ten-year yield rate of the Government bond of each Country, which increased by 5% (3% up to 31/12/2018), represents the “reference rate” for the purpose of granting tax allowance on new capital, as per article 9B of the Income [...]
Cyprus Notional Interest Deduction (NID) Introduction Generally, companies can be financed via debt, equity or a mixture of both. On the one hand, debt generates interest expense, which is usually a tax-deductible expense for the borrower. Equity on the other hand is associated with dividends, which are not deductible for [...]
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