Cyprus

Cyprus is an island country located in the Eastern Mediterranean Sea, to the east of Greece, south of Turkey, west of Israel and Lebanon, and north of Egypt. It has been an independent state since 1960 and a member of the European Union since 2004. The official currency is the euro. The country has an open market economy with a positive growth rate, driven mainly by the services sector, including financial services, tourism, and real estate.

The corporate income tax (CIT) rate is 12.5%, and the deadline for filing the CIT return is March 31st of the second year following the relevant tax/calendar year. The final payment due date is August 1st of the year following the relevant tax/calendar year, and two equal instalments are due on July 31st and December 31st of the relevant tax/calendar year.

The personal income tax (PIT) rate is 35%, and the due date for filing the PIT return varies depending on the individual taxpayer’s profile. The final payment due date is August 1st of the year following the relevant tax year, and the estimated payment due date is July 31st of the current tax year.

The value-added tax (VAT) rate is 19%, and there are reduced rates of 5% and 9%. Withholding tax (WHT) rates vary depending on residency and the type of income, with the highest rate being 30%. The capital gains tax (CGT) rate is 20% for both corporations and individuals.

There is no net wealth/worth tax or inheritance tax in Cyprus.

THE HEADLINES

• The corporate income tax rate in Cyprus is 12.5%
• The personal income tax rate is 35%
• Standard VAT rates stand at 19%