Income Tax for Individuals

Where an individual is a resident in Cyprus, tax is imposed on income accruing or arising from sources both within and outside the Republic of Cyprus.

If an individual is not a resident of Cyprus, tax is imposed only on the income accruing or arising from sources within Cyprus.

Tax Rates for individuals

Taxable Income 
Tax Rate
Cumulative Tax
0 – 19.500 0 0 0
19.501 – 28.000 20 1.700 1.700
28.001 – 36.300 25 2.075 3.775
36.301 – 60.000 30 7.110 10.885
Over 60.000 35    

Foreign pension is taxed at the rate of 5%. An annual exemption of €3.420 is granted. The taxpayer can however elect to be taxed at the normal rates and bands set out above. This is a choice which may be made year-on-year.


Lump Sum payment on Retirement 100%
Capital Sums from Life Insurance Policies 100%
Capital Sums from Approved Pensions 100%
Emoluments of Foreign Diplomatic Representatives 100%
Foreign Exchange Gains (Realized and Unrealized) 100%
Interest Income 100%
Dividend Income 100%
Profit from Sale of Securities 100%

Tax Deductions

Expenses on Rented Property 20% of Rents
Interest Paid in Respect of Rented Property 100%
Subscriptions to Unions & Professional Associations 100%
Donations to Approved Charitable Institutions 100%
Social Insurance Contributions, Life Insurance Premiums and Contributions to Approved pensions Up to 1/6 of Taxable Income
Special Contribution for Employees 100%


More in this category: « Tax Diary Income Tax for Companies »