Tax AdvantagesCyprus is unique when it comes to the taxation aspects of living on the island. The following income tax rates apply to individuals: Chargeable income (£ CYP) | Tax Rate (%) | Accumulated tax (£ CYP) |
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0 – 10,000 | - | - |
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10,001 – 15,000 | 20 | 1,000 |
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15,001 – 20,000 | 25 | 2,250 |
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Over 20,000 | 30 | |
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Retirees who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% per annum while an exception for the first £2,000 is granted. Additionally, Cyprus has Double Taxation treaties with many European and other countries, safe-guarding its residents from paying tax in both countries. This gives the option to the citizens of those countries to take advantage of the very low rate in Cyprus.
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