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 individuals are liable to tax on their worldwide income (earned within and outside Cyprus) and non-resident individuals are liable to tax only on income earned within Cyprus. As from 1 January 2008 the income tax rates are: for income up to €19.500 at a zero tax rate, €19.501-28.000 at 20%, €28.001-36.300 25% and over €36.301 at 30%.

Business investors: Foreign individuals and companies that acquire property in Cyprus take advantage of the taxation benefits (corporate tax of 10%) and the other advantages that Cyprus offers.

Non Cypriot Residents employed in Cyprus are granted a special exemption of 20% of their emoluments with €8.543 the highest exemption amount for a period of 3 years commencing from 1st January following the year of commencement of employment. Cyprus residents employed outside Cyprus in a non Cyprus resident employer or in a foreign permanent establishment of a Cyprus resident employer are exempt from taxation on any income derived outside Cyprus, if the period of employment exceeds 90 days in a tax year.