Income Tax Rates

Calculating your income tax

Current personal income tax rates in Cyprus are as follows:

Taxable Income (CY£)	Tax Rate (%)	Cumulative Tax (CY£)
Up – 10,000		–
10,000 – 15,000	20	1,000
15,000 – 20,000	25	2,250
Over 20,000	30

Foreign pensions and property income are taxed at different rates.

Deductions

Before you’re liable for income tax, you can subtract certain deductions from your gross income, including the following:

Contributions or premiums paid to widows’ and orphans’ pension funds or schemes;
Donations to approved charitable funds;
Membership fees for trade and professional organisations, if membership is mandatory;
40 per cent of amounts deposited with a Housing Finance Corporation;
20 per cent of any rental income from property in Cyprus;
Interest on a loan taken out to purchase or improve a rental property.
Depreciation on a rental property (3 per cent deduction);
Social security contributions, provident fund, medical fund and pension fund contributions and life insurance contributions (the deduction is one-sixth of the chargeable income on all these payments);
Expenditure incurred for the maintenance of a listed building where a Preservation Order applies (the deduction depends on the square footage of the building).

In order to claim deductions relating to personal expenditure or family circumstances, it’s usually necessary to produce receipts.

Cash Grants

Under the 2003 tax reforms, tax allowances were either abolished or replaced by cash grants, as follows:

Child Grant – All families resident in Cyprus are entitled to a basic child grant, plus a supplementary grant which varies according to the family’s income, as follows (all amounts are in CY£):