How much are taxes in Cyprus?

Cyprus is a low-tax country and therefore a potential tax haven in Europe. Managing directors of a limited company pay 12.5% tax on annual profits (corporation tax). Taxation of employees, on the other hand, is similar to that in Germany. In this article, you will find out what taxes are charged in Cyprus and what you can expect as a non-dom person. 

Corporate income tax in Cyprus

The corporate income tax or income tax for a limited company in Cyprus is 12.5%, regardless of whether the limited company is founded by a foreigner or a Cypriot. With an annual profit of 100,000 euros, 12,500 euros in corporate income tax is due. Comparing this with the income tax in Germany, the corporate income tax in Cyprus is only one third of the top tax rate in Germany, depending on the assessment of the income tax.

Tax residence in Cyprus

A natural person from Europe can become a tax resident of the Republic of Cyprus by staying in the Republic of Cyprus for more than 183 days. One also becomes a tax resident of Cyprus provided that the person ...

  • does not stay in another country for more than 183 days
  • is not resident for tax purposes in any other country
  • maintains a residence in Cyprus (rented or purchased) 
  • is resident in Cyprus for at least 60 days per year (does not have to be at a stretch)
  • operates a company in Cyprus (e.g. a Limited) and is employed there

If the business or holding of an office in Cyprus is terminated, the person will no longer be considered a tax resident in the Republic of Cyprus for that tax year.

Income tax in Cyprus

All income of a natural person in Cyprus up to 19,500 euros is not taxable, comparable to a small business in Germany. Income above this amount is taxed at the following rate according to the Cyprus Income Tax Law:

Annual incomeTax rateTaxes payable
0€ - 19.500€0%tax free for NON DOM
19.501€ - 28.000€ 20% 1.700€ (with income of 28.000€)
28.001€ - 36.300€25%3.775€ (with income of 36.300€)
36.301€ - 60.000€30 %10.885€ (with income of 60.000€)

Tax advantages for Cypriot companies

  • Corporate income tax of only 12.5%, low taxes for shipping and shipping companies
  • No corporate income tax for companies that are not tax resident in Cyprus 
  • no tax for gains on shares and sales of securities
  • no withholding tax for dividends received by persons outside Cyprus
  • Offshore companies from other countries are allowed to be shareholders
  • Only 2.65% social security tax on freely withdrawable dividends (no limit)
  • No business tax for a company in Cyprus

Withdrawal taxation

Anyone who emigrates to Cyprus and has been subject to unlimited tax liability for at least 10 years must pay an exit tax. The prerequisite is that the residence is moved abroad permanently or indefinitely. This tax is also payable if the person has held investments of at least 1% in the last 5 years at the time before moving away. The disposal value is calculated on the basis of the general value of the shares at the time of the transfer. We have listed ways to avoid exit tax here.

Possibilities to change the Non Dom status
to reach:


Non Dom status you can get within a few months if you choose the right tax firm in Cyprus
.

BELIEVED

Cyprus Limited

Incorporation of a Cyprus Limited with Non Dom status.

 
  • 60 days minimum stay per year
  • Ideal for Amazon FBA, B2B and B2C Businesses
Free consultation

NON DOM

Trade

Self-employment in Cyprus with local business.

  • For local entrepreneurs and craftsmen
  • 60 days minimum stay per year
Free consultation

Premium

Pensioner

HNWI model: financially independent person

  • No social security with 183 days minimum stay

  • Ideal for passive income or business outside EU
MORE ABOUT HNWI

Unlock all posts & tips now!


Our portal offers you the best tips & tricks for emigration to Cyprus on over 70 pages.
We are your online mentor for your entire stay in Cyprus!

Get sample forms, addresses, expert videos & discounts.  

RELEASE WHAT IS INCLUDED?

The advantages of the "NON DOM" status

There are well-defined tax benefits for Germans and foreigners
in Cyprus who obtain non-dom status:

12.5 % Corporate income tax

Instead of up to 40% taxes in Germany. Click here to go to the tax calculator.

Tax-free dividends

Tax-free dividends can be taken from the Limited several times a year. 

Tax-free share income

You do not pay any taxes on income from shares and interest (Germany up to 27.9 % tax)

Legal warranty

Non Dom status is valid for 17 years from receipt. This is set by law in Cyprus. 

Only 60 days mandatory

Instead of 183 days, you only need to be in Cyprus for at least 60 days to keep the status. 

OECD & EU-FACTA

Cyprus does not transfer tax data to other countries if the tax residence is Cyprus. 

Why become a member?

The portal www.zypern.ltd is the largest, German-language portal for emigrants and entrepreneurs,
who want to emigrate to Cyprus and legally save taxes.

Become a member

Become a member

Registration is simple and takes only a few seconds

Plan your emigration

Our coach prepares you
step by step for emigration

Found your Limited

With our partners you can establish your limited company cheaply in a fast-track procedure.

Life in Cyprus

Also on Cyprus our knowledge portal is at your side with all the tricks. Unlimited!

Become a member now Get free sample
Tax optimizer

E-BOOKLET "THE TAX OPTIMIZER"

After purchasing our mini e-booklet you will be familiar with the foreign terms and have a checklist.  

  • NON DOM - STATUS & YELLOW SLIP
  • YOUR LIMITED, DIVIDENDS & GESY
  • 20 € VOUCHER FOR THE PORTAL!
  • FREE 60 MINUTE CALL!

Price: 29,95 € 

BUY EBOOK


Digital purchase of 9 pages and 2122 words. Exchanges excluded. Do not close payment window until the end. Image not representative.

Affiliate

Frequently asked questions

Cyprus Limited

Legal

PRIVACY
IMPRINT
PRICES

Private account for emigrants:


DKB-Cash: The free Internet account

[JS_CODE_1]

All information is personal recommendations and without guarantee and liability. This website is for general information purposes and does not relate to the specific situation of any individual or legal entity. It does not constitute business, legal or tax advice.