VAT

Since 1/5/04 a statute in respect of VAT on properties was introduced. In addition to other amendments, this statute introduced VAT on the rate of 15%.

Tax Advantages

Cyprus is unique when it comes to the taxation aspects of living on the island.
The following income tax rates apply to individuals:

Chargeable income              (CYP) Tax Rate             (%) Accumulated tax
(CYP)
0 - 10.000                                      -                                       -
10.001 - 15.000                             20                                  1.000
15.001 - 20.000                             25                                  2.250
over 20.000 30

Retirees who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% per annum while an exception for the first £2.000 is granted.

Additionally, Cyprus has Double Taxation treaties with many European and other countries, safe-guarding its residents from paying tax in both countries. This gives the option to the citizens of those countries to take advantage of the very low rate in Cyprus.