Do I need a Tax I.D number in Cyprus ?
In order to buy property in Cyprus, non residents should be registered with the Cypriot Revenue, by filing for a tax I.D. number.
Non residents in reciept of rental income or who possess assets in Cyprus are obliged to pay taxes to the Cypriot State, in order to submit a tax return you must have or applied for a Tax I.D. number.
How can I pay my taxes in Cyprus ?
Taxes due for payment generally have to paid from a Cypriot bank account. The process is made all the more difficult by hainvg someone to physically go into the bank when making certain tax payments. International bank transfers are generally not accepted.
As a non resident, am I liable to file tax returns in Cyprus ?
All non residents that own property in Cyprus have an obligation to file an income tax return when income within a calendar year exceeds €19,500. If you are in receipt of rental income or other Cypriot sourced income, an income tax return will be required if income is in excess of €19,500.
I own a property in Cyprus that is un-occupied, am I still liable to file tax returns in Cyprus ?
Lifestyle properties do not incur any Cypriot income tax liability.
What are the income tax rates in Cyprus for non residents ?
The income tax rates in Cyprus range from 20% for income above €19,500 up to 30% on income over €36,601.
How can I pay my taxes in Cyprus?
All non residents that own property in Cyprus have an obligation to file an income tax return when income within a calendar year exceeds €19,500. If you are in receipt of rental income or other Cypriot sourced income an income tax return will be required if income is in excess of €19,500.
What is the deadline date for filing tax returns in Cyprus ?
The tax filing deadline date in Cyprus is the 30th April for employees, June 30th for self-employed. Residents have to file their Special Defence Contribution by the 30th June and December 31st each year.
When is the deadline for filing Immovable Property Tax return ?
The deadline for filing the immovable property tax return in Cyprus is the 30th September.
What are the penalties for late filing ?
The Cypriot tax authorities impose a €51.00 penalty for late filing of an income tax return. Additional penalties and interest can be imposed which are dependant on how late the tax return was submitted and the amount of tax owing.
The fine and penalty imposed for late filing is dependent on the circumstances surrounding the delay in filing. Each case is taken on a case by case basis.
What are allowable expenses on my Cypriot tax return ?
Every individual is entitled to the following yearly allowances:
a) A reduction of 20% on the gross rental income received.
b) A deduction for the total interest paid for the acquisition of the property rented.
c) Capital allowances of 3% on the cost of the rented property (for 33 years from the date of purchase).
Is Mortgage interest relief allowed as an expense on my Cypriot tax return ?
Yes, mortgage interest relief is allowable as a deduction for non residents in Cyprus.
What is the capital Gains Tax (CGT) rate in Cyprus ?
Gains made from the sale of an immovable Cypriot property are taxed at 20%.
Subject to certain conditions, individuals may claim the following deductions:
- Up to €85,430 if the disposal relates to a private residence.
- Up to €25,629 if the disposal is made by a farmer and it relates to agricultural land.
- Up to €17,086 on any other disposal.
The above options are available only once in the lieftime of the person selling the property. If the seller claims a combination of each deduction, the maxmium deduction allowed is capped at €85,430.00
