You will have to file Cyprus tax returns if you are either:
- Cyprus tax resident, or
- receive Cyprus source income
Who is a Cyprus tax resident?
According to the Income Tax Law, you become Cyprus tax resident in one of the following cases:
You have been physically present in Cyprus for one or more periods exceeding in aggregate 183 days in the same tax year.
You have been physically present in Cyprus for at least 60 days during the tax year and meet all of the following conditions:
do not reside in any other single country for a period exceeding 183 days in aggregate, and
you are not tax resident of any other country, and
carry out business activity in Cyprus or you are an employee or director of a Cyprus tax resident company at any time during the tax year, provided that such is not terminated during the tax year, and
own or lease a permanent residential property in Cyprus
What are some key tax benefits for expats?
Foreign individuals who were based overseas and who were not Cyprus tax residents before coming to Cyprus may be entitled to the following tax concessions:
50% exemption of their income for a period of 10 years if their remuneration in Cyprus exceeds €100,000 per year
20% exemption of their income or €8,550 (whichever is lower) for a period of 5 years in case of any employment exercised in Cyprus
5% reduced rate on overseas pension over and above €3,420
100% exemption from Special Defence Contribution (SDC) on dividend, interest and rental income for non-domiciled individuals
100% exemption on remuneration performed outside Cyprus for more than 90 days to a non-Cyprus resident employer
Capital gains from the sale of immovable property situated outside Cyprus are exempt from tax
No inheritance and gift tax
No wealth tax
How are expats taxed in Cyprus?
Expats who are Cyprus tax residents are taxed on their worldwide income. Those who are not Cyprus tax residents are taxed only on the income arising from Cyprus sources.
Expat employees and self-employed individuals have to make social insurance and NHS (Gesy) contributions.
Why use our expat tax services?
We make sure that you comply with all relevant domestic tax legislation. We will also help you avail of any applicable tax reliefs or exemptions whatever your domicile position is.
Our expat tax team keeps abreast of the constantly changing tax legislation so you can rest assured that your tax returns are correct and you do not miss the deadlines.
Our service approach
Every single one of our clients, corporate or private, small or big, local or international, earns the right to the same quality of personal accounting service the moment they choose us.
Association of Chartered Certified Accountants
Institute of Certified Public Accountants of Cyprus
All CPAs are accountants but not all accountants are CPAs. To qualify as a CPA, candidates are required to pass an exam. Most states also require an ethics exam or course, as well as continuing education credits.
– Forbes –
Quantia Advisors Ltd is a firm of Certified Public Accountants approved and registered to carry on accounting and audit work in Cyprus. Details about our statutory audit and general practice accreditations can be viewed at the Institute of Certified Public Accountants of Cyprus (ICPAC) under reference E264/A/2013 and E264/G/2013, respectively.