Implementation of National Minimum Wage in Cyprus Beginning on January 1, 2023, the National Minimum Wage in Cyprus will be in effect. The relevant Decree issued by the Council of Ministers stipulates a gross starting salary of €855 per month for the first six months of employment. After six [...]
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 [...]
Deemed Dividend Distribution of 31 December 2022 We would like to bring to your attention the obligations arising from the deemed dividend distribution (DDD) provisions of the Special Contribution for the Defence Law that will be in effect on December 31, 2022. What profits are within the scope of [...]
Payment of 2nd provisional tax installment for 2022 We would like to remind you that the payment deadline for the 2nd and final provisional tax installment for the tax year 2022 is the 31st of January 2023. The timely payment of provisional tax can be made through the tax [...]
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 [...]
Payment of 1st provisional tax installment for 2022 We would like to remind you that the payment deadline for the 1st provisional tax installment for the tax year 2022 is the 31st of August 2022. The timely payment of provisional tax can be made through jccsmart.com, the card payment [...]
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 [...]
Cyprus measures for EU-blacklisted jurisdictions Further to our previous post, on 21 December 2021 the Cypriot Income Tax Law and Special Defence Contribution Law were amended for the introduction of defensive tax measures that will apply in Cyprus in relation to jurisdictions included on the EU list of non-cooperative [...]
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