Taxes in Cyprus
The tax rates in Cyprus are pretty low, but obviously not compared to the tax rates of European tax havens such as Monaco and Andorra. Here is a short explanation of the tax system in Cyprus:
Personal income tax
There is no income tax of the first €19,500 personal income on a yearly basis, which means that a significant part of the Cypriot population does not pay personal income tax. The rates for personal tax is as follows:
Personal income Income tax
€0 – €19,500 0 %
€19,501 – €28,000 20 %
€28,001 – €36,300 25 %
€36,301 – 60,000 30%
60,000 + 35%
Social tax
On all personal income there is a 6-7% income tax, which is paid by the employee. The company also adds to the social insurance tax.
Other taxes and tax benefits
There are also other minor taxes, company taxes, taxes on dividends plus some tax benefits for new comers that are relevant to look at. You can read more in our article with a detailed explanation of the tax system and benefits in Cyprus.
You can read much more about taxes in Cyprus here.