Telecoms & Satellite Communications Guide Cyprus

CyprusProfile Digital Series
Telecoms & Satellite Communication
Personal Income Tax
BASIS OF TAXATION
All Cyprus tax residents are taxed in Cyprus on all income accrued or derived
from all sources in Cyprus and abroad such as employment income, rental income
etc. (i.e. worldwide income). Individuals who are not tax residents of Cyprus are
taxed on income accrued or derived from sources in Cyprus. An individual is tax
resident in Cyprus if one of the following conditions are met:
• he/she spends physically in Cyprus over 183
days during the relevant tax year, or;
• he/she does not remain in any other state for one or more periods
which altogether exceed 183 days in the same tax year and he/
she is not tax resident in any other state for the same tax year
and all the following conditions are cumulatively met:
• he/she should remain in Cyprus for at least 60 days during the tax year;
• he/she should pursue any business in Cyprus and/or to
work in Cyprus and/or to be a director in a company tax
resident in Cyprus at any time during the tax year;
• he/she should maintain a permanent residence in Cyprus,
which can be either owned or rented by him/her
PERSONAL TAX RATES
The following income tax rates apply to individuals:
Taxable Income TaxRate (%) Tax (€) Cumulative Tax (€)
0-19,500 0 0 0
19,501- 28,000 20 1,700 1,700
28,001-36,300 25 2,075 3,775
36,301-60,000 30 7,110 10,885
60,001 and over 35
TAX INCENTIVES FOR EXPATRIATE EMPLOYEES
TAKING UP EMPLOYMENT IN CYPRUS:
The individuals who were non-Cypriot tax residents prior to the commencement
of their employment, but become Cypriot tax residents afterwards, are eligible for
a 50% exemption from income tax if all the following conditions are met:
• their remuneration from the employment exercised
in Cyprus is over €100,000 per annum; and
• they were not tax residents of Cyprus for any three out of the last five
years prior to the commencement of their employment and they were
not tax residents of Cyprus in the year preceding their employment
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