TAX NATIVES
GLOBAL
OUR JURISDICTIONS —
Personal Tax
LAST UPDATED 11/01/2024
AT A GLANCE
Personal Income Tax (“PIT”) is applied to the income of individuals who are considered tax residents of Cyprus, regardless of where in the world that income comes from. If an individual is not a tax resident of Cyprus, they will only be taxed on certain types of income that come from sources within Cyprus.
There are different tax rates and bands that apply to different levels of chargeable income. The table provided in the statement shows the current PIT rates and bands.
In addition to PIT, there is also a Special Defence Contribution (SDC) that is imposed on certain types of income earned by individuals who are both Cyprus tax resident and Cyprus domiciled for SDC purposes. SDC is applied to dividend, interest (with some exceptions), and rental income. For dividend and interest income, SDC is applied instead of PIT, while for rental income it is applied in addition to PIT.
Individuals who are not tax residents of Cyprus and individuals who are tax residents but not domiciled for SDC purposes are exempt from SDC for all of their income. There are rules around how an individual’s domicile status is determined for SDC purposes, including a requirement for individuals with a “Domicile of Origin” in Cyprus to meet certain criteria.
The statement also includes information about the specific SDC rates that apply to different types of income, as well as the conditions under which certain exceptions to those rates may apply.
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Personal tax residence
This is a statement about how to determine tax residency for individuals in Cyprus. There are two ways to meet the criteria: the “183-day rule” and the “60-day rule.”
Under the “183-day rule,” an individual is considered a tax resident of Cyprus if they spend more than 183 days in Cyprus in any one calendar year.
Under the “60-day rule,” an individual is considered a tax resident of Cyprus if they meet the following criteria:
- They do not spend more than 183 days in any other single state in aggregate for the relevant tax year.
- They are not considered a tax resident by any other state.
- They spend at least 60 days in Cyprus in the relevant tax year.
- They have other defined ties to Cyprus, such as conducting business or being employed in Cyprus, holding an office in a Cyprus-based company, and maintaining a permanent residential property in Cyprus.
For both the “183-day rule” and the “60-day rule,” the calculation of days spent in and out of Cyprus is based on the individual’s arrival and departure dates, with specific rules for same-day arrivals and departures.
Types of personal income
The way people earn money can affect how much tax they have to pay in Cyprus. Here are some things to keep in mind:
- If you have a job, you have to pay tax on your salary, including any bonuses or benefits you get. However, some things are exempt from tax (see below).
- If you’re self-employed, you also have to pay tax on your profits. But you can deduct any expenses that were necessary to earn that money.
- If you own a business with a branch or office outside Cyprus, you might not have to pay tax on the profits from that branch. However, there are some conditions you need to meet.
- If you receive rental income from property, you have to pay tax on that income. But you can deduct some expenses before calculating the tax.
- Some types of income are exempt from tax, including certain grants and payments received from approved funds.
- Capital gains (profits from selling assets) are generally not taxed in Cyprus, unless they relate to property in Cyprus.
- Dividend and interest income are exempt from personal income tax, but are subject to a special tax called the Special Defence Contribution (SDC).
It’s important to keep in mind that tax rules can change over time. For example, as of July 2022, there are new exemptions for certain types of employment income.
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TAX NATIVES: ADVISOR — AdviserThe Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives. The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page. That's cool. However, the Adviser will be eligible to pay the full monthly membership fee. |
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| Initial admin fee | £250 Free | £250 Free | £250 Free |
| Minimum membership term | 12 months | 12 months | 12 months |
Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No | YesCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
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Curator
The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages.
There is only one Curator membership available for each jurisdiction.
Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.
| Initial admin fee | £250 Free |
| Minimum membership term | 12 months |
Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
| Managing and updating your jurisdiction page | Yes |
FREE
Read moreTAX NATIVES: CREATOR —
Creator
The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.
There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.
| Initial admin fee | £250 Free |
| Minimum membership term | 12 months |
Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
YesCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
| Managing and updating your jurisdiction page | No |
£65 / month
Read moreTAX NATIVES: ADVISOR —
Adviser
The Adviser is a fully-fledged member of the Tax Natives team.
As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page.
That's cool.
However, the Adviser will be eligible to pay the full monthly membership fee.
| Initial admin fee | £250 Free |
| Minimum membership term | 12 months |
Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
| Managing and updating your jurisdiction page | No |
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