For salaries, benefits of employment and the director’s remuneration, the main advantages are:
a) The first €19.500 is taxed at 0%, see the table below:
up to €19 500 0%
€19 501 – €28 000 20%
€28 001 – €36 300 25%
€36 301 – €60 000 30%
i) 20% of the remuneration from any office or employment exercised in Cyprus by an individual who was a resident outside Cyprus before the commencement of their employment, or €8.543, whichever is lower. This exemption applies for a period of five years.
ii) 50% of the earnings of non-resident individuals taking up employment in Cyprus and earning over €100.000 will be exempt from tax for 10 years.
Contributions to Cypriot us approved charities are deductible with no limits.
a) For resident and non-domiciled individuals, no withholding taxes apply
b) For residents and domiciled individuals:
On dividends: 17%
On investment interest: 30%
If SDC applies, then no income tax is payable.
3. Taxes withheld abroad can be credited against corresponding Cypriot tax.
4. Social Insurance Contributions
Total employee’s contribution is 8,3%.
5. Gains on disposal of shares/titles are not subject to tax.
6. Overseas Pensions
The income of an individual who is a resident in Cyprus from a pension for services outside Cyprus is subject to tax at 5% if it exceeds €3.417.