The actual and total amount you will be required to pay in Cyprus it will depend on many factors, but the most important ones are: What “kind/type” of income you have, and how much.
Types of income can vary, and each category might be taxed differently.
For example, the most common source of income is the salary coming from employment. Or if you are a senior citizen your income most probably will be your pension. It is a good idea to find out, how will you be taxed should you move in Cyprus.
The main tax in Cyprus is the Income tax, and for individuals is taxed on a scale level, meaning that there is no a single flat rate. The rate starts at 0% for the first €19,500 and progresses up to 35% (see table below).
Amount of Income | Rate | Accumulated Tax |
Up to €19,500 | 0% | €0 |
From €19,501 to €28,000 | 20% | €1,700 |
From €28,001 to €36,300 | 25% | €3,775 |
From €36,301 to €60,000 | 30% | €10,885 |
Income over €60,001 | 35% |
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Cyprus Is the only Country in European Union that a taxpayer can benefit from the 0% tax on the first €19,500.
That alone means that a person needs to earn a lot more money in any other European member state to have the same spending power and therefore the same quality of life as a person who lives in Cyprus.
There are many reasons why someone would choose Cyprus to relocate. If you are interested in finding out more about Cyprus, then you will most definitely love this article.
Of course, as we mentioned above, the tax system can get complicated and is not black or white. All people’s circumstances are different and so are their tax implications.
If you are currently examining the possibility of relocating in Cyprus and want to know more about your specific tax implications, contact us or if you want to have an initial understanding of your tax position before engaging in any specific and expensive tax advice check out this form.