Cyprus: Business Environment
The property tax was abolished on 1 January 2017, but property transfer taxes are payable according to the value of the property. They amount to EUR 2,550 (or 3% of the value) for any property valued at EUR 85, 000 or less. The rate increases to 5% for real estate worth between EUR 85,001 and EUR 170,000, and to 8% for any value above EUR 170,000. These fees are reduced by 50% if the property is exempt from VAT. No rights apply if the property is subject to VAT. Mortgage registration fees are 1% of the market value of the property.
The capital contribution when setting up a company is EUR 105 and 0.6% of the nominal value of the authorised capital.
Stamp duties are capped at EUR 20,000 per document and apply to any transaction involving property situated in Cyprus or a deed signed in Cyprus.
Resident companies are subject to a special defensive contribution of 17% on dividends, 30% on interest income and 3% on rental income.
Credit institutions established in Cyprus and their foreign branches are subject to a 0.15% tax on certain deposits of money. Companies also pay a lump-sum fee of EUR 350 per year, capped at EUR 20,000 per group.
Cyprus | Eastern Europe & Central Asia | United States | Germany | |
Number of Payments of Taxes per Year | 16.0 | 13.9 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 119.5 | 226.2 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 22.4 | 36.5 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Income Tax | Progressive tax rates from 0% up to 35%. |
EUR 0 -19,500 | 0% |
EUR 19,501 - 28,000 | 20% |
EUR 28,001 - 36,300 | 25% |
EUR 36,301-60,000 | 30% |
Over EUR 60,000 | 35% |
Special Defence Contribution (SDC) | 3% rental income 17% dividends 30% interest (3% for corporate and Cyprus government bonds) |
Find out more about Taxes and Accounting in Cyprus on GlobalTrade.net, the Directory for International Trade Service Providers.
Any Comment About This Content? Report It to Us.
© Export Entreprises SA, All Rights Reserved.
Latest Update: April 2022