Companies are required to maintain accounting records and to prepare financial statements in accordance with the International Financial Reporting Standards (IFRS). Some companies are required to have their financial statements audited. Financial statements must be in Greek or certifiably translated into Greek.
The deadline for filing the company financial statements and annual return for any given year is no later than the end of the following year.
Corporate Income Tax (CIT)
Every company should submit a tax return on an annual basis. The current corporate income tax rate is 12.5%. There are a number of exemptions for specific types of incomes, profits and gains.
Value Added Tax (VAT)
The standard VAT rate is 19%. There are reduced rates of 9%, 5% and 0% on specific goods and services.
The VAT registration threshold for taxable supplies in Cyprus is €15,600 per 12-month period.
An individual would be considered a Cyprus tax resident for income tax purposes if they are present in Cyprus for a period exceeding 183 days in the tax year. A Cyprus tax resident individual would be liable to tax on income arising from both within and outside of Cyprus.
Income tax rates are dependent on taxable income bands which range from 0% to 35%. There are various deductions permitted and also personal allowances which may be available.
Inheritance tax/Estate duty
If only Cypriot laws of inheritance apply to your estate, then there will be no inheritance tax to pay in Cyprus as this was abolished in 2001.
Capital gains tax
This is imposed at a rate of 20%. There are a number of exemptions such as transfers of immoveable property on death and gifts between spouses, parents and children and certain relatives.