Cyprus Tax Planning

services

cyprus tax planning

Social Insurance

The Social Insurance Scheme is financed by the employers and insured persons contributions.

Social Insurance and other Contributions

The employer is obliged to pay the contributions (his rate and the rate of the employee) to the Social Insurance Fund. Contributions to the social insurance and other relevant funds are calculated on the employee’s gross emoluments at the following rates:

Table - 2 Column Wide

Plant and machinery

10

Furniture and fittings

10

Industrial carpets

10

Machinery and tools used in an agricultural business

15

Vehicles and Means of Transportation*

Commercial motor vehicles

20

Motor cycles

20

Excavators, tractors, bulldozers, self-propelled loaders and drums for petrol companies

25

Armoured cars (e.g. used by Security Services)

20

Specialised machinery for the laying of railroads

20

New airplanes

8

New helicopters

8

Sailing vessels

4,5

Motor Yachts

6

Steamships, tug-boats and fishing boats

6

Ship launching machinery

12,5

New cargo vessels

8

New passenger vessels

6

Used cargo/passenger vessels

Over their UEL

* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).

Other

Televisions and videos

10

Computer hardware and operating systems

20

Application software

33 1/3

Application software for less than €1.709 is written off in the year of acquisition

Wind Power Generators

10

Photovoltaic Systems

10

Tools in general

33 1/3

Videotapes property of video clubs

50

Buildings*

Commercial buildings

3

Industrial, agricultural and hotel buildings

4

Flats

3

Metallic greenhouse structures

10

Wooden greenhouse structures

33 1/3

* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.

Table - 4 Column

Dividends from Cyprus tax resident companies

0%

17% if received after the lapse of 4 years fromthe end of the year in which the profits were distributed

17%

0%

Dividends from non-Cyprus tax resident companies

0%

However, 0% andnot 17% is applicable when:
a) more than 50% of the foreignpaying company’s activities result directly or indirectly in investment income,and
b) theforeign tax is significantly lower than the tax burden in Cyprus, i.e. lessthan 6,25%

17%

0%

Interest income arising from the ordinary activities or closely connected with theordinary activities of the business

0% but subject to corporation tax

0% but subject to personal tax

Other interest income

30%

30% (subject to conditions)

0%

Rental income less 25%

3%

0%

The Social Insurance Scheme applies to all workers (employed and self-employed). Voluntary insurance is allowed to persons who wish to continue insurance after a prescribed period of compulsory insurance or to persons who work abroad in the service of Cypriot employers.

The maximum amount of insurable earnings for the purpose of payment of contributions is fixed by Regulations. This amount is usually revised every year. In case that the wage or salary is higher than the maximum amount of insurable earnings, no contribution is paid on that higher amount. The maximum amount for the year 2022 is €58.080 (monthly €4.840).

Deadlines for payment of contributions

Employers pay their contributions (including the employee’s share), by the end of the calendar month which follows the month for which contributions are due. For example, for January 2022 contributions must be paid by the 28th of February 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Self-employed persons pay their contributions quarterly within one month and ten days from the end of each quarter. For example, January-March 2022 contributions must be paid by 10th of May 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Payment of contributions

Social insurance payments are made to the District Offices of the Department of Social Insurance. Social insurance payments can on the internet via the department's online Contributions Payment System known as SISweb. https://www.pay.sid.mlsi.gov.cy/

Additional charge for late payment

In case of delay in the payment of contributions by an employer, an additional charge must be paid to the Social Insurance Fund and the Social Cohesion Fund fixed as a percentage of the contributions due and rising progressively according to the time of delay. For the first month of delay the charge is 3% and increases by 3% for each month of delay, after the first month, up to a maximum of 27%.

‍

Individuals can deductfrom the capital gain the following:

Disposal of private residence (subject to certain conditions)

€85.430

Disposal of agricultural land by a farmer

€25.629

Any other disposal of immovable property

€17.086

Table - 4 Column

Up to 85.000

3

2.550

85.000 – 170.000

5

4.250

6.800

Above 170.000

8

Individuals can deductfrom the capital gain the following:

Transfer to children

0%

Transfer to spouse

0,1%

Transfer to a relative (up to 3rd degree)

0,1%

Penalties

Late registration

€ 85 per month

Late deregistration

€85 one off

Late submission of VAT return

€100 per return

Late submission of VIES return

€50 per return

Late submission of Intrastat return

€15 per return

Late correction of mistake on VIES return

€15 per return

Failure to issue a lawful receipt

20% of the value of the supply

Late payment of VAT

(i) 10% of the payable amount (one off)
(ii) and interestfor any complete month for which the amount remains due

Non-settlement of VAT amounts

Interest for every complete month for which the amount remains due

Failure to apply the reverse charge provisions

€200 per return which will not exceed the penalty of €4.000

Table - 2 Column Wide

Up to 31 December 2016

9

01/01/2007 – 31/12/2009

8

01/01/2010 – 31/12/2010

5,35

01/01/2011 – 31/12/2012

5

01/01/2013 – 31/12/2013

4,75

01/01/2014 – 31/12/2014

4,5

01/01/2015 – 31/12/2016

4

01/01/2017 – 31/12/2018

3,5

01/01/2019 – 31/12/2019

2

01/01/2020 – 31/12/2021

1,75

From 1 January 2022

1,75

services

cyprus tax planning

Social Insurance

The Social Insurance Scheme is financed by the employers and insured persons contributions.

Social Insurance and other Contributions

The employer is obliged to pay the contributions (his rate and the rate of the employee) to the Social Insurance Fund. Contributions to the social insurance and other relevant funds are calculated on the employee’s gross emoluments at the following rates:

Table - 2 Column Wide

Plant and machinery

10

Furniture and fittings

10

Industrial carpets

10

Machinery and tools used in an agricultural business

15

Vehicles and Means of Transportation*

Commercial motor vehicles

20

Motor cycles

20

Excavators, tractors, bulldozers, self-propelled loaders and drums for petrol companies

25

Armoured cars (e.g. used by Security Services)

20

Specialised machinery for the laying of railroads

20

New airplanes

8

New helicopters

8

Sailing vessels

4,5

Motor Yachts

6

Steamships, tug-boats and fishing boats

6

Ship launching machinery

12,5

New cargo vessels

8

New passenger vessels

6

Used cargo/passenger vessels

Over their UEL

* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).

Other

Televisions and videos

10

Computer hardware and operating systems

20

Application software

33 1/3

Application software for less than €1.709 is written off in the year of acquisition

Wind Power Generators

10

Photovoltaic Systems

10

Tools in general

33 1/3

Videotapes property of video clubs

50

Buildings*

Commercial buildings

3

Industrial, agricultural and hotel buildings

4

Flats

3

Metallic greenhouse structures

10

Wooden greenhouse structures

33 1/3

* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.

Table - 4 Column

Dividends from Cyprus tax resident companies

0%

17% if received after the lapse of 4 years fromthe end of the year in which the profits were distributed

17%

0%

Dividends from non-Cyprus tax resident companies

0%

However, 0% andnot 17% is applicable when:
a) more than 50% of the foreignpaying company’s activities result directly or indirectly in investment income,and
b) theforeign tax is significantly lower than the tax burden in Cyprus, i.e. lessthan 6,25%

17%

0%

Interest income arising from the ordinary activities or closely connected with theordinary activities of the business

0% but subject to corporation tax

0% but subject to personal tax

Other interest income

30%

30% (subject to conditions)

0%

Rental income less 25%

3%

0%

The Social Insurance Scheme applies to all workers (employed and self-employed). Voluntary insurance is allowed to persons who wish to continue insurance after a prescribed period of compulsory insurance or to persons who work abroad in the service of Cypriot employers.

The maximum amount of insurable earnings for the purpose of payment of contributions is fixed by Regulations. This amount is usually revised every year. In case that the wage or salary is higher than the maximum amount of insurable earnings, no contribution is paid on that higher amount. The maximum amount for the year 2022 is €58.080 (monthly €4.840).

Deadlines for payment of contributions

Employers pay their contributions (including the employee’s share), by the end of the calendar month which follows the month for which contributions are due. For example, for January 2022 contributions must be paid by the 28th of February 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Self-employed persons pay their contributions quarterly within one month and ten days from the end of each quarter. For example, January-March 2022 contributions must be paid by 10th of May 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Payment of contributions

Social insurance payments are made to the District Offices of the Department of Social Insurance. Social insurance payments can on the internet via the department's online Contributions Payment System known as SISweb. https://www.pay.sid.mlsi.gov.cy/

Additional charge for late payment

In case of delay in the payment of contributions by an employer, an additional charge must be paid to the Social Insurance Fund and the Social Cohesion Fund fixed as a percentage of the contributions due and rising progressively according to the time of delay. For the first month of delay the charge is 3% and increases by 3% for each month of delay, after the first month, up to a maximum of 27%.

‍

Individuals can deductfrom the capital gain the following:

Disposal of private residence (subject to certain conditions)

€85.430

Disposal of agricultural land by a farmer

€25.629

Any other disposal of immovable property

€17.086

Table - 4 Column

Up to 85.000

3

2.550

85.000 – 170.000

5

4.250

6.800

Above 170.000

8

services

cyprus tax planning

Social Insurance

The Social Insurance Scheme is financed by the employers and insured persons contributions.

Social Insurance and other Contributions

The employer is obliged to pay the contributions (his rate and the rate of the employee) to the Social Insurance Fund. Contributions to the social insurance and other relevant funds are calculated on the employee’s gross emoluments at the following rates:

Table - 2 Column Wide

Plant and machinery

10

Furniture and fittings

10

Industrial carpets

10

Machinery and tools used in an agricultural business

15

Vehicles and Means of Transportation*

Commercial motor vehicles

20

Motor cycles

20

Excavators, tractors, bulldozers, self-propelled loaders and drums for petrol companies

25

Armoured cars (e.g. used by Security Services)

20

Specialised machinery for the laying of railroads

20

New airplanes

8

New helicopters

8

Sailing vessels

4,5

Motor Yachts

6

Steamships, tug-boats and fishing boats

6

Ship launching machinery

12,5

New cargo vessels

8

New passenger vessels

6

Used cargo/passenger vessels

Over their UEL

* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).

Other

Televisions and videos

10

Computer hardware and operating systems

20

Application software

33 1/3

Application software for less than €1.709 is written off in the year of acquisition

Wind Power Generators

10

Photovoltaic Systems

10

Tools in general

33 1/3

Videotapes property of video clubs

50

Buildings*

Commercial buildings

3

Industrial, agricultural and hotel buildings

4

Flats

3

Metallic greenhouse structures

10

Wooden greenhouse structures

33 1/3

* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.

Personal Income Tax Rates

0 – 19.500

0

19.501 – 28.000

20

1.700

28.001 – 36.300

25

2.075

3.775

36.301 – 60.000

30

7.110

10.885

60.001 and over

35

The Social Insurance Scheme applies to all workers (employed and self-employed). Voluntary insurance is allowed to persons who wish to continue insurance after a prescribed period of compulsory insurance or to persons who work abroad in the service of Cypriot employers.

The maximum amount of insurable earnings for the purpose of payment of contributions is fixed by Regulations. This amount is usually revised every year. In case that the wage or salary is higher than the maximum amount of insurable earnings, no contribution is paid on that higher amount. The maximum amount for the year 2022 is €58.080 (monthly €4.840).

Deadlines for payment of contributions

Employers pay their contributions (including the employee’s share), by the end of the calendar month which follows the month for which contributions are due. For example, for January 2022 contributions must be paid by the 28th of February 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Self-employed persons pay their contributions quarterly within one month and ten days from the end of each quarter. For example, January-March 2022 contributions must be paid by 10th of May 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Payment of contributions

Social insurance payments are made to the District Offices of the Department of Social Insurance. Social insurance payments can on the internet via the department's online Contributions Payment System known as SISweb. https://www.pay.sid.mlsi.gov.cy/

Additional charge for late payment

In case of delay in the payment of contributions by an employer, an additional charge must be paid to the Social Insurance Fund and the Social Cohesion Fund fixed as a percentage of the contributions due and rising progressively according to the time of delay. For the first month of delay the charge is 3% and increases by 3% for each month of delay, after the first month, up to a maximum of 27%.

‍

Individuals can deductfrom the capital gain the following:

Disposal of private residence (subject to certain conditions)

€85.430

Disposal of agricultural land by a farmer

€25.629

Any other disposal of immovable property

€17.086

Table - 4 Column

Up to 85.000

3

2.550

85.000 – 170.000

5

4.250

6.800

Above 170.000

8

services

cyprus tax planning

Social Insurance

The Social Insurance Scheme is financed by the employers and insured persons contributions.

Social Insurance and other Contributions

The employer is obliged to pay the contributions (his rate and the rate of the employee) to the Social Insurance Fund. Contributions to the social insurance and other relevant funds are calculated on the employee’s gross emoluments at the following rates:

Table - 3 Column Wide

Employees

1,70%

2,65%

Employers*

1,85%

2,90%

State

1,65%

4,70%

Self-Employed

2,55%

4%

Pensioners

1,70%

2,65%

Income earners (interest, rent, dividends etc.)

1,70%

2,65%

Officials

1,70%

2,65%

*Including the State as Employer

Table - 2 Column Wide

Plant and machinery

10

Furniture and fittings

10

Industrial carpets

10

Machinery and tools used in an agricultural business

15

Vehicles and Means of Transportation*

Commercial motor vehicles

20

Motor cycles

20

Excavators, tractors, bulldozers, self-propelled loaders and drums for petrol companies

25

Armoured cars (e.g. used by Security Services)

20

Specialised machinery for the laying of railroads

20

New airplanes

8

New helicopters

8

Sailing vessels

4,5

Motor Yachts

6

Steamships, tug-boats and fishing boats

6

Ship launching machinery

12,5

New cargo vessels

8

New passenger vessels

6

Used cargo/passenger vessels

Over their UEL

* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).

Other

Televisions and videos

10

Computer hardware and operating systems

20

Application software

33 1/3

Application software for less than €1.709 is written off in the year of acquisition

Wind Power Generators

10

Photovoltaic Systems

10

Tools in general

33 1/3

Videotapes property of video clubs

50

Buildings*

Commercial buildings

3

Industrial, agricultural and hotel buildings

4

Flats

3

Metallic greenhouse structures

10

Wooden greenhouse structures

33 1/3

* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.

Personal Income Tax Rates

0 – 19.500

0

19.501 – 28.000

20

1.700

28.001 – 36.300

25

2.075

3.775

36.301 – 60.000

30

7.110

10.885

60.001 and over

35

The Social Insurance Scheme applies to all workers (employed and self-employed). Voluntary insurance is allowed to persons who wish to continue insurance after a prescribed period of compulsory insurance or to persons who work abroad in the service of Cypriot employers.

The maximum amount of insurable earnings for the purpose of payment of contributions is fixed by Regulations. This amount is usually revised every year. In case that the wage or salary is higher than the maximum amount of insurable earnings, no contribution is paid on that higher amount. The maximum amount for the year 2022 is €58.080 (monthly €4.840).

Deadlines for payment of contributions

Employers pay their contributions (including the employee’s share), by the end of the calendar month which follows the month for which contributions are due. For example, for January 2022 contributions must be paid by the 28th of February 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Self-employed persons pay their contributions quarterly within one month and ten days from the end of each quarter. For example, January-March 2022 contributions must be paid by 10th of May 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Payment of contributions

Social insurance payments are made to the District Offices of the Department of Social Insurance. Social insurance payments can on the internet via the department's online Contributions Payment System known as SISweb. https://www.pay.sid.mlsi.gov.cy/

Additional charge for late payment

In case of delay in the payment of contributions by an employer, an additional charge must be paid to the Social Insurance Fund and the Social Cohesion Fund fixed as a percentage of the contributions due and rising progressively according to the time of delay. For the first month of delay the charge is 3% and increases by 3% for each month of delay, after the first month, up to a maximum of 27%.

‍

Individuals can deductfrom the capital gain the following:

Disposal of private residence (subject to certain conditions)

€85.430

Disposal of agricultural land by a farmer

€25.629

Any other disposal of immovable property

€17.086

Table - 4 Column

Up to 85.000

3

2.550

85.000 – 170.000

5

4.250

6.800

Above 170.000

8

services

cyprus tax planning

Social Insurance

The Social Insurance Scheme is financed by the employers and insured persons contributions.

Social Insurance and other Contributions

The employer is obliged to pay the contributions (his rate and the rate of the employee) to the Social Insurance Fund. Contributions to the social insurance and other relevant funds are calculated on the employee’s gross emoluments at the following rates:

Table - 3 Column Wide

Employees

1,70%

2,65%

Employers*

1,85%

2,90%

State

1,65%

4,70%

Self-Employed

2,55%

4%

Pensioners

1,70%

2,65%

Income earners (interest, rent, dividends etc.)

1,70%

2,65%

Officials

1,70%

2,65%

*Including the State as Employer

Table - 2 Column Wide

Plant and machinery

10

Furniture and fittings

10

Industrial carpets

10

Machinery and tools used in an agricultural business

15

Vehicles and Means of Transportation*

Commercial motor vehicles

20

Motor cycles

20

Excavators, tractors, bulldozers, self-propelled loaders and drums for petrol companies

25

Armoured cars (e.g. used by Security Services)

20

Specialised machinery for the laying of railroads

20

New airplanes

8

New helicopters

8

Sailing vessels

4,5

Motor Yachts

6

Steamships, tug-boats and fishing boats

6

Ship launching machinery

12,5

New cargo vessels

8

New passenger vessels

6

Used cargo/passenger vessels

Over their UEL

* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).

Other

Televisions and videos

10

Computer hardware and operating systems

20

Application software

33 1/3

Application software for less than €1.709 is written off in the year of acquisition

Wind Power Generators

10

Photovoltaic Systems

10

Tools in general

33 1/3

Videotapes property of video clubs

50

Buildings*

Commercial buildings

3

Industrial, agricultural and hotel buildings

4

Flats

3

Metallic greenhouse structures

10

Wooden greenhouse structures

33 1/3

* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.

Personal Income Tax Rates

Social Insurance

8,3

-

Social cohesion

2

-

Redundancy

1,2

-

Industrial Training

0,5

-

Holiday (exemptions apply)

8

-

The Social Insurance Scheme applies to all workers (employed and self-employed). Voluntary insurance is allowed to persons who wish to continue insurance after a prescribed period of compulsory insurance or to persons who work abroad in the service of Cypriot employers.

The maximum amount of insurable earnings for the purpose of payment of contributions is fixed by Regulations. This amount is usually revised every year. In case that the wage or salary is higher than the maximum amount of insurable earnings, no contribution is paid on that higher amount. The maximum amount for the year 2022 is €58.080 (monthly €4.840).

Deadlines for payment of contributions

Employers pay their contributions (including the employee’s share), by the end of the calendar month which follows the month for which contributions are due. For example, for January 2022 contributions must be paid by the 28th of February 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Self-employed persons pay their contributions quarterly within one month and ten days from the end of each quarter. For example, January-March 2022 contributions must be paid by 10th of May 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Payment of contributions

Social insurance payments are made to the District Offices of the Department of Social Insurance. Social insurance payments can on the internet via the department's online Contributions Payment System known as SISweb. https://www.pay.sid.mlsi.gov.cy/

Additional charge for late payment

In case of delay in the payment of contributions by an employer, an additional charge must be paid to the Social Insurance Fund and the Social Cohesion Fund fixed as a percentage of the contributions due and rising progressively according to the time of delay. For the first month of delay the charge is 3% and increases by 3% for each month of delay, after the first month, up to a maximum of 27%.

‍

Individuals can deductfrom the capital gain the following:

Disposal of private residence (subject to certain conditions)

€85.430

Disposal of agricultural land by a farmer

€25.629

Any other disposal of immovable property

€17.086

Table - 4 Column

Up to 85.000

3

2.550

85.000 – 170.000

5

4.250

6.800

Above 170.000

8

services

cyprus tax planning

Social Insurance

The Social Insurance Scheme is financed by the employers and insured persons contributions.

Social Insurance and other Contributions

The employer is obliged to pay the contributions (his rate and the rate of the employee) to the Social Insurance Fund. Contributions to the social insurance and other relevant funds are calculated on the employee’s gross emoluments at the following rates:

Table - 3 Column Wide

Employees

1,70%

2,65%

Employers*

1,85%

2,90%

State

1,65%

4,70%

Self-Employed

2,55%

4%

Pensioners

1,70%

2,65%

Income earners (interest, rent, dividends etc.)

1,70%

2,65%

Officials

1,70%

2,65%

*Including the State as Employer

Table - 2 Column Wide

Plant and machinery

10

Furniture and fittings

10

Industrial carpets

10

Machinery and tools used in an agricultural business

15

Vehicles and Means of Transportation*

Commercial motor vehicles

20

Motor cycles

20

Excavators, tractors, bulldozers, self-propelled loaders and drums for petrol companies

25

Armoured cars (e.g. used by Security Services)

20

Specialised machinery for the laying of railroads

20

New airplanes

8

New helicopters

8

Sailing vessels

4,5

Motor Yachts

6

Steamships, tug-boats and fishing boats

6

Ship launching machinery

12,5

New cargo vessels

8

New passenger vessels

6

Used cargo/passenger vessels

Over their UEL

* Plant and machinery,vehicles (excluding private motor vehicles) and other assets acquired duringthe tax years 2012 - 2018 (inclusive) are eligible to accelerated taxdepreciation at the rate of 20% (excluding such assets which are alreadyeligible for a higher annual tax rate of tax depreciation).

Other

Televisions and videos

10

Computer hardware and operating systems

20

Application software

33 1/3

Application software for less than €1.709 is written off in the year of acquisition

Wind Power Generators

10

Photovoltaic Systems

10

Tools in general

33 1/3

Videotapes property of video clubs

50

Buildings*

Commercial buildings

3

Industrial, agricultural and hotel buildings

4

Flats

3

Metallic greenhouse structures

10

Wooden greenhouse structures

33 1/3

* In the case ofindustrial and hotel buildings that are acquired during the tax years 2012 -2018 (inclusive), accelerated tax depreciation at the rate of 7% per annumapplies.

Personal Income Tax Rates

Social Insurance

8,3

-

Social cohesion

2

-

Redundancy

1,2

-

Industrial Training

0,5

-

Holiday (exemptions apply)

8

-

The Social Insurance Scheme applies to all workers (employed and self-employed). Voluntary insurance is allowed to persons who wish to continue insurance after a prescribed period of compulsory insurance or to persons who work abroad in the service of Cypriot employers.

The maximum amount of insurable earnings for the purpose of payment of contributions is fixed by Regulations. This amount is usually revised every year. In case that the wage or salary is higher than the maximum amount of insurable earnings, no contribution is paid on that higher amount. The maximum amount for the year 2022 is €58.080 (monthly €4.840).

Deadlines for payment of contributions

Employers pay their contributions (including the employee’s share), by the end of the calendar month which follows the month for which contributions are due. For example, for January 2022 contributions must be paid by the 28th of February 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Self-employed persons pay their contributions quarterly within one month and ten days from the end of each quarter. For example, January-March 2022 contributions must be paid by 10th of May 2022. If the last day of the month is a Saturday, Sunday or a public holiday, the last day for the payment of contributions is the following working day.

Payment of contributions

Social insurance payments are made to the District Offices of the Department of Social Insurance. Social insurance payments can on the internet via the department's online Contributions Payment System known as SISweb. https://www.pay.sid.mlsi.gov.cy/

Additional charge for late payment

In case of delay in the payment of contributions by an employer, an additional charge must be paid to the Social Insurance Fund and the Social Cohesion Fund fixed as a percentage of the contributions due and rising progressively according to the time of delay. For the first month of delay the charge is 3% and increases by 3% for each month of delay, after the first month, up to a maximum of 27%.

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Individuals can deductfrom the capital gain the following:

Disposal of private residence (subject to certain conditions)

€85.430

Disposal of agricultural land by a farmer

€25.629

Any other disposal of immovable property

€17.086

Table - 4 Column

Up to 85.000

3

2.550

85.000 – 170.000

5

4.250

6.800

Above 170.000

8

Social Insurance

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