Cyprus
Western Asia • UTC+3 • Asia/NicosiaCyprus Personal Income Tax
Cyprus has a progressive personal income tax system with rates ranging from 0% to 35%. The system is designed to be competitive and attractive to foreign residents.
Income Tax
0%–35%
Progressive rates
Corporate Tax
12.5%
Flat corporate tax rate
VAT / GST
19%
Standard VAT rate
Nomad Visa
Available
Digital Nomad Visa
Tax System Overview
Cyprus offers a progressive tax system for personal income and a flat corporate tax rate. The system is designed to attract foreign investment and residents.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Cyprus-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Cyprus's progressive income tax bands based on annual taxable income in EUR (2025).
Tax Treaty
Double Taxation Agreements help avoid double taxation on income earned in foreign countries.
United Kingdom
Treaty ActiveThe treaty between Cyprus and the UK prevents double taxation and reduces withholding taxes on dividends, interest, and royalties.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
United Kingdom
Agreement ActiveThe agreement between Cyprus and the UK prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for UK–Cyprus workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
12.5% flat rate for all businesses
VAT Registration
Mandatory if annual turnover exceeds €15,600.
Freelancer Rules
Freelancers are subject to personal income tax rates and must register for VAT if applicable.
Crypto Policy
Cryptocurrency gains are treated as capital gains and taxed accordingly.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No tax on foreign income for non-domiciled residents
- Low corporate tax rate of 12.5%
Filing Roadmap
Register for Tax
Obtain a tax identification number from the Cyprus Tax Department.
Gather Income Documents
Collect all necessary income statements and documentation.
File Tax Return
Submit your tax return online via the Cyprus Tax Portal by the deadline.
Pay Any Tax Due
Ensure any taxes owed are paid by the deadline to avoid penalties.