Cyprus: Tax For Individuals In Cyprus

Imposition of Tax

An individual who is tax resident in the Republic of Cyprus (the Republic), is taxed on income accruing or arising from sources both within and outside the Republic.

An individual, who is not tax resident in the Republic, is taxed on income accruing or arising only from sources within the Republic.

Tax Residency

An individual who spends more than 183 days in the Republic is a tax resident of the Republic. An individual can be a tax resident of the Republic even if he/she spends less than or equal to 183 days in the Republic provided that he/she satisfies all of the following conditions within the same tax year (1st January – 31st December):

• Does not spend more than 183 days in any other country
• Is not a tax resident of any other country
• Spends at least 60 days in the Republic
• Maintains a permanent home in the Republic that is either owned or rented
• Carries on a business in the Republic, is employed in the Republic or holds an office in a person who is a tax resident of the Republic at any time during the tax year
• If the employment/business or holding of an office is terminated during the year, then the individual would cease to be considered a tax resident of the Republic for that tax year

The below points are for the purpose of calculating the days of presence in the Republic:

• the day of arrival is considered as a day in the Republic
• the day of departure is considered as a day out of the Republic
• the arrival into the Republic and departure from the Republic on the same day is considered as a day in the Republic and Individuals Income Tax
• the departure from the Republic and return to the Republic on the same day is considered as a day out of the Republic.

Tax Rate

Taxable Income €	Tax Rate %
0-19,500	0
19,501 – 28,000	20
28,001 – 36,300	25
36,301 – 60,000	30
60,001 and over	35 (this rate is applicable as from the year 2011 onwards)

Social Insurance Fund Contribution Rates Effective 1st January 2024

In accordance with the Cyprus Social Insurance Law of 59(I)/2010, as amended, the contribution rates to the Social Insurance Fund will increase as follows, effective 1st January 2024:

• In the case of employed persons, the contribution rates to the Social Insurance Fund by both the employer and the employee will increase from 8,3% to 8,8% on insurable earnings.
• In the case of self-employed persons, the contribution rate to the Social Insurance Fund will increase from 15,6% to 16,6% on insurable earnings.

Social Insurance Contributions Applicable To Employees Effective 1st January 2024

As of 1 January 2024, the employees' own contribution to the state-administered social insurance fund is 8.8% of their gross remuneration, with a maximum annual cap on insurable emoluments as of 1 January 2024 of EUR 62,868. The rate of 8.8% applies for both employee and the employer as from 1 January 2024 and for the next five years. Thereafter, the rate will increase every five years until it reaches 10,7% as from 1 January 2039.

It is noted that contributions to the Social Cohesion Fund are calculated on actual earnings, not subject to the above caps.

Please refer to the below summary table for the applicable contribution rates which are payable by employers and employees for 2024:

Social insurance contribution rates for 2024
Fund	Employer	Employee
Social Insurance	8,8%	8,8%	C
Redundancy	1,2%	-	C
Training and Development	0,5%	-	C
Social Cohesion	2,0%	-	N.C
Total	12,5%	8,8%

C=Cap at €5.239/ month; N.C=No Cap

Social Insurance Contributions Applicable To Self-employed Persons Effective 1st January 2024

As of 1 January 2024, the contributions of self-employed persons are 16,6% of their income (15,6% for 2019 through 2023). Thereafter, the rate will increase every five years until it reaches 20,4% as from 1 January 2039. The amount of the contributions is subject to a lower and a maximum limit, depending on the profession or trade of the self-employed person. These limits are set on an annual basis.