EVERYTHING YOU NEED TO KNOW ABOUT TAX BENEFITS

Obtaining Cypriot Citizenship does not in itself influence the tax treatment of an individual. Tax is imposed based on the tax residency and domicile of an individual. In Cyprus, a tax resident individual can have benefits from various tax incentives, listed below:

• No taxation on income derived from dividend and income derived from interest as soon as he / she is also non-domiciled in Cyprus
• Tax exemption of 50% of gross employment income earned in Cyprus by an individual earning more than €100,000 of gross employment income per annum and who was resident outside of Cyprus before the commencement of his / her employment in Cyprus (available for 10 years)
• Tax exemption of 20% of gross employment income (up to a maximum of €8.550) earned in Cyprus by an individual earning less than €100,000 of gross employment income per annum and who was resident outside of Cyprus before the commencement of his / her employment in Cyprus (available up to 2020)
• No taxation on any profits derived from the disposal of securities including shares and bonds
• No taxation on income derived from employment to an overseas employer or to an overseas permanent establishment (PE) of a Cypriot employer for more than 90 days in a tax year
• No taxation for total emoluments up to €19.500
• 5% tax on pension received from abroad exceeding €3.420
• No taxation on any lump sum derived from a retirement gratuity
• No inheritance tax.