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Cyprus Personal Taxation Incentives to benefit non – Cyprus individuals to become tax residents of Cyprus

The Cyprus Income Tax Law provides a number of tax reliefs that either existed under Cyprus Tax Law or came into effect from 1 January 2012. The aim of the law is to provide benefits to non – Cyprus resident individuals to become tax residents of Cyprus.

Residence status
An individual is considered tax resident of Cyprus if he stays in the Republic for a period or periods exceeding in aggregate 183 days in any calendar year.            

If the 183 days are met the individual is considered tax resident for the whole year. In the case of tax resident individual, tax is levied on worldwide income accruing or arising from sources both within and outside Cyprus.            


Relief for high salaried employees taking up employment in Cyprus

50% exemption applies to non residence person taking up residence in Cyprus to work to an employer in Cyprus with income exceeded €100.000 per annum for 5 years, starting from the first year of employment.

This exception applies for employment starting on or after 1 January 2012.

Standard progressive personal tax rates will apply on the income in excess of the tax free amount of 50% as follows:  


Taxable income € 


 €0 - €19.500


 €19.500 - €28.000


 €28.000 - €36.300


 €36.300 - €60.000


 Over €60.000




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