Investment Properties in Cyprus

Tax

Cyprus is a very tax-efficient country in which to either invest or have as a permanent place of residence. Despite recent tax reforms due to Cyprus' accession to the EU, taxation in Cyprus is still low in comparison to other European countries.

Personal Income Tax
Cyprus has a double taxation treaty with the UK . The main purpose of this is the avoidance of double taxation on income earned.

If you reside in Cyprus for more than 183 days a year you are considered a resident and you will be subject to taxation on your worldwide income as follows:

» Up to CY£ 10,000 Nil
» CY£ 10,001-15,000 20%
» CY£ 15,001-20,000 25%
» Over CY£ 20,000 30%

Pensions
Income from abroad is taxed at the rate of 5% on amounts that exceed CY£ 2,000

Capital Gains Tax
This applies to income gained by the sale of immovable property and the rate is 20%. However, there is an indexation allowance and other generous exemptions.

Inheritance Tax
This tax was abolished in January 2000

Corporation Tax
If you are trading in multiple properties or contracts then a Cypriot Limited Liability Company is a very tax-efficient method of conducting business with Corporation Tax on the profit at 10%.

Azure Investment Property however, strongly recommended that you take advice from an accountant or Independent Financial Advisor to establish the best strategy for you.

VAT
VAT is imposed on the provision of goods and services in Cyprus, as well as on the importation of goods into Cyprus.

The legislation provides for three tax rates:

1. Zero Rate (0%)
2. Reduced Rate (5%)
3. Standard Rate (15%)