Cyprus, being a member state of the European Union since 2004, has established itself as the first choice destination for multi-national companies because of it’s strategic location, quality of life as well as corporate incentives. The IT sector, Financial Services and recently the Energy sector have shown significant growth during the last years.
Unemployment rate is at it’s lowest 6.5% with hundreds of new IT jobs opened every month. The official language is Greek, but almost everyone speaks English as the second language which is also the official professional language.
Personal Tax Rates
Cyprus currently offers one of the lowest income tax levels within Europe with lower levels than average of cost-of-living and low taxation rates. An individual is tax resident in Cyprus if (s)he spends in Cyprus more than 183 days in any one calendar year. With effect as from 1 January 2017, an individual may also be considered tax resident in Cyprus if (s)he satisfies the “60 day rule”. The “60 day rule” applies to individuals who in the relevant tax year:
- do not reside in any other single state for a period exceeding 183 days in aggregate, and
- are not considered tax resident by any other state, and
- reside in Cyprus for at least 60 days, and
- have other defined Cyprus ties. To satisfy this condition the individual must carry out any business in Cyprus and/or be employed in Cyprus and/or hold an office (director) of a company tax resident in Cyprus at any time in the tax year, provided that such is not terminated during the tax year. Further the individual must maintain in the tax year a permanent residential property in Cyprus which is either owned or rented by him/her.
|Chargeable income for the tax year – €||Tax rate – %||Accumulated tax|
|From 19.501 – to 28.000||20%||€1.700|
|From 28.001 – to 36.300||25%||€3.775|
|From 36.301 – to 60.000||30%||€10.885|
** Dividends are except from Income Tax
Like every country, the Employee benefits may vary from Employer to Employer but due to high competition, many companies are investing in making their corporation the ideal place to work for offering at the very least:
- Annual Bonuses and 13th Salary
- Stock Options
- Medical Insurance (personal and family)
- Pension contributions
- Life insurance
- Corporate Parties
- Amazing Office Spaces
- Sports events