Expatriate tax ebook - Cyprus

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
The employers of non-EU nationals are usually required to apply for a Work Permit (WP) prior to the employee taking up employment in Cyprus. Grant Thornton Cyprus can assist in the above procedure.

Employment visas
We can assist with the paper work and the procedures necessary if such need arises.

Tax returns and compliance

• Salaried individuals must submit their personal income tax return (form IR1) by 30 April of the year following the year of assessment.
• Self employed individuals who will not be filing annual accounts by 31 December must submit their income tax return (form IR1) by 30 June of the year following the year of assessment.
• Self employed individuals who will be filing annual accounts by 31 December must submit their income tax return by 31 December of the year following the year of assessment.

Tax year
The Cyprus tax year runs from 1st January to 31st December

Income tax rates for the year 2011
The taxable income base for taxable year 2011 is as follows:

	Tax Year 2011
Rate of tax	€
0%	0 – 19 500
20%	19 501 – 28 000
25%	28 001 – 36 300
30%	36 301 and over


Sample income tax calculation

Income Tax Calculation:	€
Employment Income	30,000
Rental income	12,000
Interest income	2,000
Dividend Income	1,000
Total Income	45,000
Less allowances:
20% Allowance on gross rents	(2,400)
Interest expense relating to rented property	(2,000)
Wear and tear allowance 3% on initial cost of the building)	(6.000)
Subscriptions to professional bodies	(100)
Donations to approved charities	(300)
Social insurance contributions	(2,040)
Life insurance contributions	(1,000) 31,160
Less exempt income:
Interest income	2,000
Dividend Income	1,000
Taxable income	28.160
Tax on chargeable income at the rates applicable	1,740
Less tax deducted through (PAYE)	(1,700)
Balance payable (refundable)	40

      
Also see obligations under the Special Defence Contribution legislation for investment income.  

Information about Cyprus:


• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities







Last updated 14 June 2011

Please be aware that the data included in this expatriate tax e-book is correct at the time of publication.  Please do not act on the information contained within this e-book without first seeking expert, professional advice.
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