Digital Nomad Tax in Cyprus
Is Cyprus a tax paradise?
Registering yourself as a digital nomad in Cyprus brings you tax benefits and allows you to live in a wonderful country within the EU. In this article we explain what the digital nomad visa is, what other options there are, and why Cyprus is a great solution for all.
What are the benefits:
- Low income tax.
- No tax on foreign dividends.
- Low corporate tax.
- No tax on interest income.
- Low social insurance contributions.
- No tax on gains arising from the disposal of investments (shares, bonds, etc).
Cyprus Digital Nomad Visa Taxes:
Depending on how long you reside in Cyprus as a digital nomad, you may or may not be subject to taxation on your personal income. The Republic considers any individual who resides in Cyprus for a period of, or exceeding, 183 days in the same tax year (1 January to 31 December) a registered tax resident in the nation, on the condition that they are not registered tax residents in any other country.
Personal income tax in Cyprus is measured at the following rates:
- Up to €19,500 – zero taxation
- From €19,501 up to €28,000 – 20% taxation
- From €28,001 to €36,300 – 25% taxation
- From €36,301 to €60,000 – 30% taxation
- From €60,001 and over – 35% taxation
Corporation Tax Cyprus
- Cyprus has one of the lowest EU corporate tax rates at 12.5%.
Corporate Tax Exemptions
| Type of income | Exemption limit |
|---|---|
Profit arising from the sale of securities. | The whole amount |
Dividends (excluding, as from 1 January 2016, dividends which are tax deductible for the paying company). | The whole amount |
Interest not arising from the ordinary activities or closely related to the ordinary activities of the company. | The whole amount |
Profits of a foreign permanent establishment, under certain conditions. | The whole amount |
Gains relating to foreign exchange differences (forex) with the exception of forex arising from trading in foreign currencies and related derivatives. | The whole amount |
Profits from the production of films, series and other related audiovisual programs. | The lower of 35% of the eligible expenditure and 50% of the taxable income.Any restriction may be carried forward for 5 years. |
Relocating to Cyprus and you need help?