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Cyprus Personal Income Tax 2021

 

Cyprus is unique when it comes to the taxation aspects of living on the island. The following income tax rates apply to individuals:

Chargeable income
(€)

Tax Rate
(%)

Tax Amount 
(€)

Cumulative Tax
(€)

0 – 19.500

-

-

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

over 60.000
35
 


*GHS (GESY) contribution rates are as follows based on announcement received from the Ministry of Labour:

            - 2,65% for employees,

            - 2,90% for employers and

            - 4% for self-employed

The following are considered as exempt employments:

  1. employment of any member of the naval, military and air forces of the Government of a country other than Cyprus
  2. employment in the public or diplomatic service of the Government of a country other than Cyprus when the person employed is hired outside Cyprus
  3. employment in the service of the spouse of the person employed
  4. employment of a person who has not his permanent residency in Cyprus or in another Member State, to an employer’s service who has neither his habitual residence or registered office in Cyprus nor the place of business in Cyprus
  5. agricultural employment in the service of the father or mother

Retirees who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% per annum while an annual exception for the first €3.420 is granted. Additionally, Cyprus has established Double Taxation treaties with the majority of European and non-European countries, safe-guarding that its residents will avoid paying tax in both countries. This gives the option to the citizens of these countries to take advantage of the very low rates in Cyprus.

Cyprus Tax Information

The links below will provide you with more detailed information on the main sections related to the Cyprus taxation.