mymove Cyprus

Cyprus Tax Incentives for Individuals: Making Your Move to Paradise More Appealing

Cyprus Tax Incentives for Individuals: Making Your Move to Paradise More Appealing

Cyprus isn’t just a place of stunning beaches, rich history, and endless sunshine – it’s also a fiscally attractive location for individuals looking to relocate or invest. The Cyprus government offers a range of tax incentives designed to make the island nation even more appealing. Here’s a breakdown of some key benefits you might enjoy:

 

Foreign Tax Relief:

If you’ve already paid taxes on your foreign income in another country, Cyprus will give you a credit on your Cypriot taxes.  This credit is capped at the lower amount between the tax you paid abroad and the tax you would owe in Cyprus on that same income.

There are two ways you can qualify for this credit:

Double Taxation Treaty (DTT): Many countries have tax treaties with Cyprus. These treaties help prevent residents from being taxed twice on the same income.

Unilateral Relief: Even if there’s no DTT with your home country, Cyprus tax law might still offer you some relief on your foreign income.

 

Reduced 5% VAT for First-Time Home Buyers:

Looking to buy your dream home in Cyprus? As a first-time buyer, you might qualify for a reduced Value Added Tax (VAT) rate of just 5% on the purchase price! This incentive significantly reduces the upfront cost of buying a property in Cyprus.

 

Expatriate Tax Relief:

Expatriates relocating to Cyprus for work can benefit from various tax exemptions. This includes a tax exemption on a portion of their employment income, making Cyprus a financially rewarding place to call home.

There are two schemes of this incentive:

– 50% tax exemption of the remuneration from any employment exercised in Cyprus by an individual, offered for a period of 10 years.

– 20% tax exemption of the remuneration, or €8,550 (whichever is the lower) from any employment exercised in Cyprus by an individual, offered for a period of 5 years.

 

Investments in Approved Innovative Enterprises:

Since 2017, qualifying investments in innovative small and medium businesses can be deducted from your taxable income. Deduct up to 50% of your pre-deduction taxable income, capped at €150,000 annually.  Plus, unused deductions can be carried forward for 5 years to maximize your tax savings.

Investments in Audiovisual Infrastructure and Technological Equipment:

Individuals who invest in audiovisual infrastructure used for audiovisual productions in Cyprus can deduct 20% of the cost from their taxable income, subject to certain terms and conditions. This is a great way to support the local film industry and potentially save on your tax bill.

 

In Conclusion:

These are just a few of the many tax incentives Cyprus offers to individuals.  Whether you’re looking to buy a home, invest in exciting ventures, or simply enjoy a tax-friendly lifestyle, Cyprus has something for you.

 

Thinking of making Cyprus your new home?

Get in touch with us! Our team of professionals will guide you through the entire process of locating, negotiating for, buying and moving into your new dream home in Cyprus!

 

DISCLAIMER: The above is not in any form professional tax advice.

You don't have permission to register