Allowance for foreign tax: In case that foreign tax was paid on income subject to income tax, this can be given as a credit against the resulting income tax liability on that income irrespective of the existence of a double tax treaty with the foreign country.
Special Tax Rates: Foreign pensions of individuals: - Up to €3420 0% - Over €3420 5%
Special Tax Rates: Foreign pensions of individuals: - Up to €3420 0% - Over €3420 5%
- Income of a person from the rendering of ship management services, as these are specified in the Merchant Shipping Law (in the case of 4.25%an individual, no personal allowances, credits or exemptions are allowed)
- The gross amount of any royalty, premium, compensation or other income, derived from sources within Cyprus by any person not being 10% resident, is subject to withholding tax of 10%.
- The gross amount of any rental in respect of the showing of cinematograph films in Cyprus, derived by any person who is not resident, is subject to withholding tax of 5%.
- The gross income derived by an individual not resident in Cyprus, from the exercise in Cyprusof any profession or vocation or of public entertainers including football clubs and other athletic missions, is subject to withholding tax of 10%.
Charge of tax: Tax is imposed on profits from the disposal of immovable property situated in Cyprus, or shares in companies, which have immovable property in Cyprus, and such shares are not listed in any recognised stock market.
Tax rate and determination of profit: The tax is imposed on the net profit from disposal at the rate of 20%. The net profit is calculate as the disposal proceeds, less the greater of the cost or market value on 1 January 1980 adjusted for inflation. Inflation is calculated using the official Retail price index. The index on 1 January 1980 was 35,40 (base year 2005).
Tax rate and determination of profit: The tax is imposed on the net profit from disposal at the rate of 20%. The net profit is calculate as the disposal proceeds, less the greater of the cost or market value on 1 January 1980 adjusted for inflation. Inflation is calculated using the official Retail price index. The index on 1 January 1980 was 35,40 (base year 2005).
- Transfer by reason of death
- Gifts to relatives within the third degree of kindred
- Gift to a company of which the shareholders are and continue to be members of the disposer’s family for five years after such gift.
- Gift by a company, of which all the shareholders are members of the same family, to any of its shareholders when the property gifted was also acquired by the company as a gift. The property must remain in the hands of the done for a period of at least three years.
- Gift to the Republic or to a local authority for educational or other charitable purposes or to approved charitable institutions.
- Exchange or sale in accordance with the AgriculturalLand(Consolidation) Laws.
- Exchange of properties where the values of the immovable properties being exchanged are equal.
- Gain on disposal of shares, which are listed on any Stock Exchange.
- Gains from transfer of property or shares in the course of an approved company reorganization.
- For sale of own residence €85,430
- For sale of agricultural land by a farmer € 25,629
- For other sales €17.086
There are no succession inheritance taxes in Cyprus. Cypriots may not dispose by will of the whole of their estate if they have a spouse and/or children . The un-disposable portion is one half of the estate if the deceased leaves a spouse or parent but no children and three quarters of the estate if he leaves children.
Charge Of Tax
Every registered owner whose immovable property value exceeds €120000 is required to submit a declaration of immovable property and pay the respective tax every year before 30 September.
Every registered owner whose immovable property value exceeds €120000 is required to submit a declaration of immovable property and pay the respective tax every year before 30 September.
| Assessed 1980 Property Value | Annual Property Tax Rate | Accumulated Tax(max) |
|---|---|---|
| € | % | € |
| 1 to 12,500 | nil | 0 |
| 12,501 to 40,000 | 0.60 | 240* |
| 40,001to 120,000 | 0.80 | 880 |
| 120,001to 170,000 | 0.90 | 1,330 |
| 170,001 to 300,000 | 1.10 | 2,760 |
| 300,001 to 500,000 | 1.30 | 5,360 |
| 500,001 to 800,000 | 1.50 | 9,860 |
| 800,001 to 3,000,000 | 1.70 | 47,260 |
| More than 3,000,000 | 1.90 | ------- |
*Those owning property whose total 1980 value exceeds €12.500 will pay tax on their total 1980 value
LAND REGISTRY OFFICE FEES
Transfer fees: Transfer fees are payable to the land registry on transfer of property title to the purchaser and are calculated as follows:
| Purchase Price € | Transfer Fee % |
|---|---|
| €0 to €85,430 | 3% |
| €85,431 to €170,860 | 5% |
| €170,861 and above | 8% |
In the case of an approved company reorganisation, the transfer of immovable property is neither subject to transfer fees nor to mortgage fees.
Stamp duty is imposed on documents or agreements if they relate to things and matters done in Cyprus(e.g. disposal of property situated in Cyprus, disposal of shares of Cypriot company by its Cyprus parent).
Stamp duty is imposed on the value of a contract as follow and is capped at a maximum of€20,000 per stampable agreement:
Stamp duty is imposed on the value of a contract as follow and is capped at a maximum of€20,000 per stampable agreement:
| Purchase Price € | Stamp DutyFees % |
|---|---|
| €0 to €5,000 | 0% |
| €5,001 to €170,000 | 0,15% |
| €170,000 and above | 0,20% |