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 Personal Income

• Interest income: 10% (withholding tax)
• Non-residents working in Cyprus: For the first 3 years following the first year of employment 20% exemption of their emoluments applies with max C£5.000 annually
• Expatriate employees contribute to social insurance fund (6.3%)

Comparison of personal tax rates between Cyprus and the UK

• Cyprus - Scale of 20%-30% for income € 19.501
• UK - Scale of 10%-40% for income £1+