Cyprus tax resident individuals are liable to income tax on their worldwide income.
Residence requires presence in Cyprus of more than 183 days per calendar year. Cyprus non-tax residents are liable to income tax for income arising from sources in Cyprus. The first €19,500 is tax free and above this amount the income tax rates are progressive ranging from 20% to a maximum of 35% for chargeable income above €60,000.

Dividends:
o Dividends paid to a resident individual are subject to a Special Contribution for Defence (SCD) at a rate of 17% (20% in 2013) which is withheld at source.
o Dividends paid to a non-resident individual are not liable to SCD

Interest:
o Interest paid to a non-resident individual is not subject to any tax.
o Interest paid to a resident individual is subject to SCD at a rate of 30% which is withheld at source.

Rent:
o Rent paid to a Cyprus tax resident, is subject to SCD at a rate of 3% on 75% of the rental income. Note that Rental income is also subject to personal income tax.

Transfer fees on immovable property:
o Transfer fees ranging from 3% to 8% calculated on the market value of the property as estimated by the Land Registry.

Other taxes:
o Annual real property tax on 1980 values increasing from 0.6% to 1.9%.
o Social Security.
o Stamp duty on contract relating to property or actions performed in Cyprus. (Maximum payable is €20,000)

This article is written for information purposes only and does not constitute legal advice.