Tax Tips for Cyprus Employees / Employed Persons Explained

EMPLOYED PERSONS

Tax Free Income

• Salary received up to Euro 19,500 (or Euro 21,500 if social insurance contributions are being paid on the whole amount).
• Income from disposal of securities such as shares (say of a banking institution)

Tax Allowable Expenditure

• Social Insurance contributions
• Special contribution for defence and special tax payments
• Expenditure incurred for the acquisition of shares in an innovative business
• Donations to approved charities (supported with receipts)
• Lump sum received by way of retiring gratuity, commutation of pension or compensation for death or injuries

Partially Tax-Free Income

• First Employment in Cyprus

Allows significant tax exemptions so please contact us as soon as you agree your employment with a local company.

• Rental income

Rental income is taxed twice; by the income tax and special defence tax at the rates of 80% and 75% respectively.

• Income from Other Sources

Income from other sources should be added to the salary and then be taxed using the PAYE tax brackets.