It is allowed only for residents.

5% – Food, takaways, non alcoholic drinks, books, newspapers, periodicals, pharmacutical products, addmissions to social events and sport events
9% – Hotel accomodation, restaurant and caterinjg services, cafes, trasportation services
19% – All other services

Education, financial services, hospital, social welfare, postal, betting and gambling, property letting, international passenger transport, certain copyrights.

Intra-community passenger travel by air and sea, export and intracommunity supplies of goods, services to vessels and aircraft, gold to central bank.

Yes, if there is no reciprocity agreement a non-EU companies must appoint a fiscal representative in Cyprus to ensure VAT compliance. There is a possibility of registration with the provision of a bank guarantee.

The VAT declarations are filed quarterly, by the 10th day of the month following the reporting period.

A penalty of €100 plus annual interest is imposed for late filing.

Via internet banking, credit/debit card, or at the bank counters.

It can be used for offsetting a VAT payment in a subsequent period, or if the conditions are met, a request for a VAT refund can be filed.

Yes. For services vat input can be claimed for up to 6 months before the registraion and for goods up to three years.

For six years. Paper or e-invoices can be saved outside Cyprus with permission from the income tax office. They should be accessible within five working days.

Within 30 days from tax point. (supply). Intra-community invoices should be issued by the 15th day of the following month.

Yes, with the consent of the customer in accordance with EU e-invoice directive EU Directive 2010/45/EU

Yes, provided that reasonable steps for collection have been taken and the customer has been notified. Overdues have to be over 12 months.

Yes provided that the taxable turnover does not exceed €25,000 and the business is resident.

Six years, extended to twelve for fraud.

12.5%, expected to increase to 15% with the new tax reform.

First €19,500 is tax free, next €8,500 are taxed at 20%, next €8,300, next €23,700 are taxt at 30% and the rest are taxed at 35%

If you are a tax resident and you have gross income of over €19,500, then you have the obligation to file a tax return. (Please see 60 and 183-day rule for tax residency)

Yes, you are permitted do claim business expenses at a proportional basis.

To qualify for the 50% tax excemption from employment income, an individual must meet the following criteria:
(a) Not have been a Cyprus tax resident for at least 15 consecutive years before the year of commencement of first employment in Cyprus.
(b) Have an annual remuneration exceeding €55,000, achievable within the first or second year of employment in Cyprus
(c) Started first employment in Cyprus from 1 January 2022 and onwards

Individuals who take up first employment in Cyprus and do not qualify for the 50% exemption under article 8(23A), may be eligible for a 20% or €8,550 exemption (whichever is lower) from their employment income from sources in Cyprus.
• This exemption applies for a period of 7 years commencing from the year following the year of commencement of employment in Cyprus.
• This exemption is granted to an individual who had been employed outside of Cyprus at a non-Cyprus tax resident employer for at least 3 consecutive years prior to the commencement of the employment in Cyprus.

NID – Notional Interest Deduction provides tax relief to all Cypriot companies and enterprises that use equity and not debt to finance their investments.

Yes, dividend and interest income (not arising from ordinary acrivities) are excempt from income tax.

Yes, dividend and interest income (not arising from ordinary acrivities) are excempt from income tax.

Capital gains tax is only imposed on the disposal of immovable property situated in Cyprus, as well as on the transfer of shares directly or indirectly held in companies (other than listed shares) in which the underlying asset is immovable property situated in Cyprus and at least 50% of the fair market value of the shares is derived from the immovable property.
The sale of immovable property situated outside Cyprus is exempt from capital gains tax.

Physical presence in Cyprus exceeding 183 days in a tax year (1 January to 31 December) will constitute tax residency for individuals.
The day of departure from Cyprus is considered one day outside Cyprus;
The day of arrival in Cyprus is considered one day in Cyprus.
Arrival in Cyprus and departure from Cyprus within the same day is considered one day in Cyprus.
Departure from Cyprus and return to Cyprus within the same day is considered one day outside Cyprus.

An individual who does not stay in any other country, for one or more periods exceeding in aggregate 183 days in the same year and is not tax resident in any other country for the same year, is deemed as tax resident in Cyprus in that year, if the following conditions are cumulatively met:
(i) the individual stays in Cyprus for at least 60 days in the year,
(ii) exercises a business and/or is employed in Cyprus and/or holds an office with a Cyprus tax resident company at any time during the tax year,
(iii) maintains (by owning or leasing) a permanent home in Cyprus.
The law is further amended to clarify that an individual that cumulatively meets all the above conditions shall not be treated as a Cyprus tax resident in the year, if during that year the exercise of any kind of business in Cyprus and/or employment in Cyprus and/or holding of an office with a tax resident person in Cyprus, is terminated.

A domicile of origin (i.e. the domicile received by an individual at birth); and
• A domicile of choice (i.e. the domicile acquired by an individual by establishing a home with the intention of a permanent or indefinite stay). A person who has a domicile of origin in Cyprus will be treated as “domiciled in Cyprus” for SDC purposes with the exception of:
• An individual who has obtained and maintained a domicile of choice outside Cyprus under the provisions of the Wills and Succession Law, provided that this individual was not a Cyprus tax resident for a period of at least 20 consecutive years prior to the tax year in question; or
• An individual who was not a Cyprus tax resident for a period of at least 20 consecutive years immediately prior to the entry into force of the introduced provisions (i.e. prior to 16 July 2015).

Sole proprietors with a turnover over €70,000 are obligated to file audited accounts.

Overseas pensions are exempt from tax up to the amount of €3.420 and taxed at the rate of 5% thereafter. The taxpayer may opt to be taxed in the normal way, where this special mode of taxation of income results in a higher tax liability (this election can be made from year to year).

Yes, they are 100% excempt.

Yes, there is a 100% exemption on remuneration for salaried services rendered outside Cyprus for a period in excess of 90 days in a tax year to a non-Cyprus resident employer.

The social insurance contributions for 2025 are capped to monthly earnings of €5.551 and annual earnings of €66.612.
The social insurance contribution rate is 8,8% for the employee and 8,8% for the employer (for a total of 17,6%). The employer is also liable for a contribution of 1,2% to the Redundancy Fund, 0,5% to the Training and Development Fund and 2% to the Social Cohesion Fund.
The cap mentioned above does not apply to the Social Cohesion Fund contributions. Instead, the Social Cohesion Fund contributions are applied on the gross remuneration received.
• Foreign nationals will be liable for social insurance contributions to the Cyprus Social Insurance System, if they are physically exercising their employment activities in Cyprus.
• An EU national may be eligible to remain insured in the Social Insurance System of the Member State (MS) of his/her employer for a period up to 24 months subject to conditions.

The National Health Insurance System (NHIS) Law is applicable as of the 1 March 2019. Under the NHIS rules, employers are contributing 2,9% and employees 2,65% on gross earnings with an annual cap of €180.000.