The main key aspects for you:
An individual is tax resident in Cyprus if he spends in Cyprus more than 183 days in any one calendar year.
An individual, however, may also be considered tax resident in Cyprus if he satisfies the 4 specific conditions of the “60-day rule”.
The personal tax allowance as of today is EUR19.500. However, our newly elected President of the Republic of Cyprus has announced that this will be increased to EUR24.500.
Foreigners who decide to be considered as tax resident in Cyprus, has the advantage to apply for the special 50% income tax exemption on their remuneration. Particularly, this excellent grant is offered provided that the remuneration for first employment exercised in Cyprus exceeds EUR55.000 by individuals who were not residents of Cyprus for a period of 10 consecutive tax years immediately prior to the year of commencement of the employment in Cyprus. For each individual the exemption will apply once in their lifetime for a period of 17 years.
In line with the special income tax exemption, foreigners have the vital opportunity to apply for the Non-Dom status. This legislation offers significant advantages for the holders of this status, such as:
- No tax and defense tax on dividends
- No tax and defense tax on interest
- No tax and defense tax on any abroad income received.
The Non-Dom status is applied for a period of 17 years.
Moreover, profits from the sale of securities are exempt from income tax.
Profits of a foreign permanent establishment are exempt from income tax under certain conditions.
Individuals who receive income from rental properties can claim a 20% exemption. Loan interest received for the acquisition of the property can also be deducted from income, as well as wear and tear allowance is granted.
Social Insurance, General Health System medical fund, private medical fund insurance contributions are deductible from remuneration at maximum 1,5%.
Pension and provident fund contributions are also deductible at maximum 10% of remuneration.
Life insurance premiums are deducted at maximum 7% of the insured amount.
Donations to approved charities are fully deductible from taxable income.
Expenditure of revenue nature for scientific research and for R&D, are exempted from taxable income subject to conditions.
The Cyprus Income Tax Law and in particular the Non-Dom program provide excellent opportunities to all high-end individuals who wish to achieve optimal tax planning for better savings.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in this contact form.
We will analyze your case and advice you on:
- What company structure suits you best,
- What is the best Tax solution(s) for your business,
- What Banking and cash flows arrangements available.
We will take you through a step by step process from A to Z in creating the perfect business in Cyprus.
Can’t wait any longer? Fill in the form and submit your inquiries make your first step and we will deal with the rest.
Become even more successful by working with accountants you can count on and be among the thousands that already did.
If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in the contact form below.
We will take you through a step by step process from A to Z in creating the perfect business structure in Cyprus.
Can’t wait any longer? Become even more successful by working with accountants you can count on and be among the thousands business that already did.