Income Tax Exemption for Taking up Employment in Cyprus

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An exemption of 50% of the remuneration from employment is available for an individual in Cyprus who was resident outside Cyprus before the commencement of his/her employment in Cyprus. The exemption applies for a period of 17 years starting from the first year of employment in Cyprus, provided that the income from such employment exceeds €55,000 per year.
Nil/reduced Withholding Tax on Income Received from Abroad
Cyprus has more than 65 tax treaties that provide for nil or reduced withholding tax rates on; dividends, interest, royalties and pensions received from abroad.

Tax Advantages for Pension Lump Sums and Income
Any lump sum received as a retirement gratuity is exempt from tax.

A Cypriot tax resident individual receiving pension income from abroad may choose to be japan mobile database taxed at a flat rate of 5%, on amounts exceeding €3,420 per year.

Additional Information
If you would like any additional information regarding the tax benefits available for expatriates and HNWI’s relocation to Cyprus, contact the Dixcart office in Cyprus.