Personal Income tax:  Chargeable Income EUR€ Tax Rate %   0 - 19.500 0   19.501 - 28.00 20  28.001 - 36.300 25  Over 36.301 30 Corporation tax: Compan...

Favourable taxation to Pensioners Foreign pensions: up to €3.417 zero taxation Over €3.417 at 5% Personal Tax related to Property No capital gains tax if property is situated abroad. If situated in Cyprus is 20%; first € 17.086 exempted; max €85.430 Rental income: 80% taxable for income tax purposes, subject to tax deductible expenses Rental income: 75% taxable for defence contribution purposes (3%) Inheritance tax was abolished in 2000 Tax on...

The registered owner of the property is liable for this annual tax which is based on the value (very much lower to actual valuation) of the property as at 01/01/1980 and is as follows. Value € Annual Tax % Up to 170.860 0 171.861 - 427.150  0.25% 427.151 - 854.300 ...

If the property sold has been the first residence of the person for at least 5 years, Eur 85.430 tax relief can be claimed. An exemption of Eur 17.086 applies to the gain of the sale of a property owned for a period of less than 5 years but only one of the two allowances can be claimed and also extensions and additions can also be claimed as deductions. Capital gains tax at the rate of 20% is then charged on the balance after deducting the indexation allowance. If an individual is en...

VAT on Real Estate: For those buildings for which an application for a town planning permit was submitted prior to the 1.5.2004, no VAT is charged in the event of a sale. For those after the above date, a VAT of 15% is charged. In case of a house purchase which is classed as the main/permanent resident of the purchaser, and provided that it is not larger than 250m², the VAT is refunded up to 10% (out of the 15%). This means that the VAT must be fully paid and then the Authorities will r...

Cyprus has Tax Treaties with 34 countries for the avoidance of double taxation of income earned. This means that those who are residence in Cyprus, can choose to be taxable in Cyprus and not in the country of origin, where tax rates are normally lower. Pensioners who are resident in the Republic and receive pension in Cyprus are liable to tax only if it exceeds €3.417 a year and the exceeded amount is charged separately from any other income at the flat rate of 5%. Resident individu...