More Reasons to be excited about Tax Incentives for Cyprus?
Tax residents of Cyprus can take advantage of all of the following schemes on offer subject to qualification:
- Personal Income Tax rates for all income earned in Cyprus start from 0% to 35%. All residents of Cyprus are entitled to the first €19,500 tax free.
- Non residents that take up residence in Cyprus for a high earning income exceeding €100,000 per annum enjoy a relief of a 50% exemption for a period of 5 years. The expected extension of the relief is to 10 years.
- Employment income acquired from working abroad receives a 100% exemption from Cyprus income tax. This applies to salaried income acquired from a non-Cyprus resident employer OR to a foreign permanent establishment of Cyprus resident employer. Salaried services have to be for a period of more than 90 days in any one tax year.
- Pensions received from previous employment outside of Cyprus is taxable at a flat rate of 5% on amounts over and above €3,420.
- 100% exemption of the total amount received by an individual arising from disposal of shares and bonds.
- 100% exemption of any lump sum received as a retirement package, commutation of pension, death gratuity or as a consolidated gratuity from injury.
- 100% exemption from lump sums payable from life insurance schemes or from approved provident funds.