Cyprus Personal Taxation

Cyprus' favourable Personal Tax System

Dr. Jean-Philippe Chetcuti | Published on 26 Jul 2016 | Updated on 15 Oct 2018

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Cyprus has recently been ranked the 5th best relocation destination in the world (Knight Frank, 2014) – which may be attributed its’ safe and secure environment, coupled with the Cyprus Personal Taxation system that provides a highly favourable tax regime for new residents - particularly high net worth individuals.

Pre-Immigration Cyprus Personal Tax Planning

Relocation to Cyprus may be carried out through various routes, and in this respect the Cypriot authorities offer various options for both EU and Non-EU citizens. Perhaps the most beneficial option for Non-EU nationals is the Citizenship by Investment route, offering access to free movement within the EU and 157 visa free destinations worldwide. Besides being valid for life, all the benefits of Cyprus Citizenship may be transferred to children - and future generations. The investment required for such a Program is a minimum of €2m, as well as residence worth €500,000.

Personal Taxation in Cyprus

From a tax perspective, Cyprus enjoys the reputation of a premier company jurisdiction, and back in 2003, Cyprus revamped its tax law - which process, served to simplify the Cypriot taxation system and improve the country’s competitive advantage in terms of international taxation. Cyprus’s tax system can be described as simple yet stable. The changes done in 2003 have resulted in a tax system which is more favourable to the tax payer. This is attributed to the consistency in interpreting the tax legislation, coupled with low tax and VAT rates. The standard corporate tax rate is 12.5%, which is considered to be amongst the lowest in the European Union.

Our Cyprus Personal Tax Advisory Service

Here at Chetcuti Cauchi we provide guidance on tax planning in conjunction with Citizenship Programs, as well as assist with any specific requirements relating to the actual Programs. In combining Cyprus Citizenship Programs with effective tax planning, we are able to offer the best value for clients wishing to obtain European Citizenship, and relocate business accordingly. Our Citizenship and Taxation Practices have assisted numerous high net worth individuals from all over the globe - in achieving just that. 


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