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Basic Principles



LEGAL PERSONS


Tax objective


According to the Income Tax Law the basis of tax is considered to be the tax residence.

 

A company is considered as a Cyprus tax resident only if its management and control are exercised in Cyprus. Cyprus residents will be taxed based on their worldwide income, whereas non residents will be taxed based on their income earned in Cyprus


PHYSICAL PERSONS


Tax objective


The tax is imposed on the income of individuals based on their tax residence.


An individual is considered as a Cyprus resident if he/she lives in Cyprus for one or more periods which exceed in total 183 days in the tax year.

 

  • Cyprus residents will be taxed on their income earned both in Cyprus and abroad
  • Non Cyprus residents will be taxed only on their income earned in Cyprus from the following sources:
  • Profits from permanent establishment
  • Salary services
  • Pensions from the provision of services in Cyprus
  • Rent from property
  • Professional services
  • Intellectual property rights
  • Projection of cinema movies
  • Entertainment and athletics services


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