Taxation and permanent residence in Cyprus are important for individuals and companies seeking to take advantage of the fiscal advantages of the country. Cyprus has become an attractive destination for investors, businesspeople and pensioners due to its convenient tax policy, advanced banking system and stable legal environment.

Taxation System in Cyprus

Individual Taxation

In Cyprus, individual taxation is progressive, i.e. the tax rate increases along with the rise in income. For Cyprus residents, individual income generated anywhere in the world is subject to tax.

Annual tax brackets:

• · Income up to €19,500 – Tax exempt.
• · €19,501-28,000 – 20% tax
• · €28,001-36,300 – 25% tax
• · €36,301-60,000 – 30% tax
• · €60,000+ – 35% tax

Corporate Tax

The tax rate on corporate profits in Cyprus is among the lowest in the EU, totaling 12.5%. Companies in Cyprus enjoy convenient taxation, including treaties for the prevention of double taxation with over 60 countries, including many countries in Europe, Asia and America.

Permanent Residence in Cyprus

Obtaining Permanent Residence

There are several tracks for obtaining permanent residence in Cyprus. The most popular is investing in real estate. In this track, investors are required to purchase a property of at least €300,000 in Cyprus.
In addition to investing in real estate, one must prove a fixed annual income from sources outside of Cyprus.

Advantages of Residency

Low taxation – Residency in Cyprus provides access to a convenient and attractive taxation system.

High quality of life – Cyprus offers a high quality of life with a pleasant climate, advanced health system and good educational system.

Access to the European market – Cyprus residency enables free access to the European market and EU states.

Friendly business environment – Cyprus is considered among the most business-friendly countries with advanced infrastructures and modern banking system.

Conclusions

Cyprus offers a variety of taxation and permanent residence advantages, rendering it an attractive destination for investors, businesspeople and pensioners. The convenient taxation system, along with the high quality of life and friendly business environment, enable ideal conditions for anyone seeking to better their financial and personal lives.