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 – 19.5000nil
19.501 – 28.000201.700
28.001 – 36.300253.775
36.301 – 60.0003010.885
Over 60.00135

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.

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