Individuals are subject to the following progressive personal income tax rates:
|0 – 19.500||0||nil|
|19.501 – 28.000||20||1.700|
|28.001 – 36.300||25||3.775|
|36.301 – 60.000||30||10.885|
Certain incomes are exempt from income tax but may be taxable under Special Defence Contribution (SDC) or other forms of taxation.
Special forms of taxation
- Foreign pension income is taxed at the flat rate of 5% on amounts over €3.420.
- Cyprus source widow(er)’s pension is taxed at the flat rate of 20% on amounts over €19.500.
Instead of the flat tax rates shown above, the taxpayer can elect on an annual basis to be taxed at the normal tax rates shown above.