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ABOUT US
Welcome to the website of e-TaxCy Services which operates online in Cyprus offering Tax Services by undertaking the Completion & Submission of Tax Returns for all natural persons (Employees/Pensioners). We know in depth the taxation/legislation issues in Cyprus and apply them in practice according to the needs of each individual. We operate with confidentiality and discretion, thus gaining the trust of our customers.
TAX SERVICES
Collection of the necessary evidence such as the Certificate of Earnings (IR63), the Certificate of Payment of Insurance Premiums, Receivable Rents, Receivable Dividends from Companies, Pensions, etc. and then completing and submitting the Employee/Pensioner’s Tax Return.
To create an account on the ‘Tax For All’ Portal you need the following:
• For Cypriot citizens: Copy of Political Identity Card.
• For Citizens of the European Union, who reside in the Republic: Copy of the “Certificate of Registration” “yellow slip”.
• Citizens of Third Countries residing in the Republic: “Residence Permit” “pink slip”.
• Citizens of the European Union or a Third Country who do not reside in the Republic: A copy of any other official certificate from your country of residence, which clearly states your tax code number / identity card / social security card, together with a letter explaining the due to your application for registration with the Cyprus Tax Department.
Registration of payable tax through the Tax Portal, information on debts, registration of debts, retrieval of payment reference number for payment of debts via internet banking, payment of debts by credit/debit card, information on payment history/offsetting.
For individual tax planning, we rely on our experience and expertise to provide optimal solutions tailored to the needs of each individual client within a legal environment where tax legislation is under constant review.
Special personal tax issues such as tax burden optimization, strategic tax support, preparation for facing tax audits, processing of tax returns and other tax technical services.
Collection of information such as:
• Full disclosure certificates
• Movement of bank accounts
• Expense status
• Child’s education expenses
• Purchase of Cars
• Sale of Cars
• Current accounts with companies
• Donations received/paid
• Wedding-christening-birthday expenses, etc.
and then the person’s Statement of Assets & Liabilities is drawn up (usually requested for five tax years).
Frequently Asked Questions That Occupy Our Customers!
(1) From which tax year are the amendments arising from the tax reform implemented?
The tax reform is implemented from the tax year 2026.
(2) When must the tax return for the year 2026 be submitted?
The tax return for 2026 must be submitted within the year 2027. The submission deadline is 31 July 2027.
(3) What is the tax-free amount?
The tax-free amount (i.e. the taxable income on which a tax rate of 0% is applied) has been increased from €19,500 to €22,000, with effect from the tax year 2026 onwards.
(4) What is taxable income?
Taxable income is the net amount that is subject to tax, after deductions of exemptions and allowances permitted by tax legislation.
(5) How have the tax bands been amended?
The tax bands applicable from the tax year 2026 are as follows:
|
Tax rate |
Taxable income |
|
0% |
from €0 to €22,000 |
|
20% |
from €22,001 to €32,000 |
|
25% |
from €32,001 to €42,000 |
|
30% |
from €42,001 to €72,000 |
|
35% |
from €72,001 and above |
(6) Who is obliged to submit a tax return for the tax year 2026 and thereafter?
A person who:
(a) has gross income (income before the deduction of any exemptions or allowances) falling within the provisions of Article 5 of the Income Tax Law, or
(b) is a tax resident of Cyprus and has reached the age of 25 but not the age of 71 by 31 December of the tax year, regardless of income.
Although there is now an obligation for everyone, without exception, to submit a Tax Return even if their earnings do not exceed the new tax-free amount of €22,000, it is noted that the Council of Ministers retains the authority, by Order, to exempt categories of persons from the obligation to submit a tax return.
(7) Which person is not obliged to submit a tax return from the tax year 2026 onwards?
A person who has no gross income and, by 31 December of the tax year,
(a) has not reached the age of 25, or
(b) has reached the age of 71.
(1) What are the new personal tax allowances provided for in the tax reform?
The personal tax allowances are granted for:
- Dependent children
- Expenditure on rent or interest on a serviced housing loan for a primary residence
- Expenditure for the energy upgrade of a primary residence and the purchase of an electric vehicle
The personal tax allowances are granted based on family status and income criteria.
(2) Do the new personal tax allowances reduce the taxable income on which the maximum deduction of 1/5 is calculated?
No, the new personal tax allowances do not reduce the taxable income on which the maximum deduction of 1/5 is calculated for insurance premiums, GHS (GESY) contributions, and contributions to funds and schemes, and they are granted in addition thereto.
Such funds and schemes include the Social Insurance Fund, the Widows’ and Orphans’ Pension Fund, pension funds and schemes, insurance schemes, and medical insurance schemes.
(3) Are the new personal tax allowances included in the maximum deduction of 1/5 together with insurance premiums, GHS contributions, and contributions to funds and schemes?
No, the new personal tax allowances are not included in the 1/5.
(4) Are the new personal tax allowances declared on Form T.F.59?
Yes, the new personal tax allowances are declared on Form T.F.59 – Declaration for claiming tax allowances, for the calculation of income tax withheld by the Employer.
In this Form, the final amount of the allowance per category is declared, without reference to income criteria or number of children, e.g. for two dependent children, a total child allowance of €2,250 is declared (€1,000 for the first and €1,250 for the second dependent child).
(5) What are the main conditions for the granting of the new personal tax allowances?
The main conditions for the granting of the new personal tax allowances are the following:
Spouses or partners in a Civil Partnership or partners without a Civil Partnership who have common children must consent to the disclosure of their tax information to each other, in order to confirm that the family income does not exceed the income criteria. Consent will be given in a special field in the tax return of each spouse or partner.
The tax returns of spouses or partners in a Civil Partnership or partners without a Civil Partnership and with common children, or of a single person, must have been submitted within the prescribed deadlines.
(6) What are the income criteria for families?
The total gross family income must not exceed the following limits:
€100,000 for families without children or with one (1) or two (2) children
€150,000 for families with three (3) or four (4) children
€200,000 for families with five (5) or more children
(7) How is gross family income calculated?
For the calculation of family income, the gross income acquired within the tax year by all members of the family is taken into account, including income from employment, self-employment, pensions, rents, interest and dividend income, alimony, grants from the Cyprus Agricultural Payments Organisation, as well as any public assistance granted by the Social Welfare Services, and any other grants, benefits, and sources of income in the Republic or abroad.
In cases where the taxpayer lives with another person with whom they have common children, the gross income of that other person is also taken into account.
(8) Which incomes are excluded from the calculation of gross family income?
Excluded from the calculation of gross family income are the incomes of dependent children who are pupils/students in full-time education from employment or self-employment, child benefit, student grant, student welfare benefits and scholarships, as well as benefits and grants to disadvantaged persons with disabilities or chronic illnesses.
(9) What is considered a Family for the purposes of calculating gross family income?
For the purposes of calculating gross family income, a Family consists of:
(a) Parents who live together and their common children, as well as the children of either parent, provided that the children live with the parents under the same roof
(b) An unmarried, widowed, or divorced father and his children who live with him under the same roof
(c) An unmarried, widowed, or divorced mother and her children who live with her under the same roof
(d) The children of the family under (a) above when both parents are deceased or missing, or the children of the families under (b) and (c) above when the father or mother respectively is deceased or missing, who live under the same roof with their guardian, his/her spouse if any, and their children if any, provided that they live together under the same roof
(e) A married father and his children who live with him under the same roof, provided that his spouse is serving a prison sentence of six (6) months or more
(f) A married mother and her children who live with her under the same roof, provided that her spouse is serving a prison sentence of six (6) months or more
(g) Spouses or partners in a Civil Partnership who do not have common children or who do not live under the same roof with any children of either or both of them
It is understood that a dependent child over eighteen (18) years of age is not required to live under the same roof with the family as referred to in paragraphs (a) to (f). In such a case, the dependent child is considered a member of the mother’s family, and if there is no mother, then a member of the father’s family.
(10) What does a single-parent family mean?
A single-parent family means:
(a) A family in which one parent lives with at least one (1) dependent child and lives either without a spouse or partner in a Civil Partnership, or without another person with whom they have common children, because they are a single parent, widowed, divorced, or because the other parent has been declared missing by a court; or
(b) A family in which a married parent lives alone with at least one (1) dependent child, because the other parent is serving a prison sentence of six (6) months or more.
That is, the term “single-parent family” applies only if the parent:
- lives under the same roof with the dependent child and has custody thereof, and
- does not have a spouse, partner in a Civil Partnership, or another person with whom they have common children.
(11) Why is a distinction made between dependent children and children?
This distinction is made so that the child allowance provided:
- takes into account the actual size of the family for the income limit,
- but provides the allowance only for children who remain dependent children.
(12) What does “children” mean for the purposes of income criteria?
For the purposes of income criteria, “children” means legitimate children, stepchildren*, children born out of wedlock, and legally adopted children.
The number of children, regardless of age, corresponds to the total number of children of the family whose habitual residence is or was the primary residence of the family, provided that at least one (1) dependent child remains as at 31 December of the tax year.
As a rule, the habitual residence of a child is under the same roof as the mother.
*Stepchild means the child of a spouse or partner in a Civil Partnership who is not the child of the other spouse/partner.
(13) If the children living under the same roof are children of only one spouse or partner in a Civil Partnership, are they counted for income criteria purposes?
Yes, they are counted, provided that at least one (1) dependent child remains in the family as at 31 December of the tax year.
(14) If the children have exceeded the age limits to be considered dependent, are they counted for income criteria purposes?
Yes, they are counted, provided that at least one (1) dependent child remains in the family as at 31 December of the tax year.
(15) If the children are married, employed, unemployed, etc., are they counted for income criteria purposes?
Yes, they are counted, provided that at least one (1) dependent child remains in the family as at 31 December of the tax year.
(16) Who is considered a single person and what are the income criteria for single persons?
A person who lives without dependent children or a spouse or partner in a Civil Partnership and whose total gross income does not exceed €40,000.
It is noted that a person who resides/cohabits with another person, other than the above-mentioned persons, is considered a single person.
(17) What are the allowances for dependent children and to whom are they granted?
The allowance for dependent children is granted to each biological or adoptive parent, for each dependent child, who is a biological or legally adopted child, as follows:
€1,000 for the first dependent child
€1,250 for the second dependent child
€1,500 for the third and each additional dependent child
(18) Who is considered a dependent child for whom an allowance is granted?
The dependent child for each parent, for whom an allowance is granted, is considered to be the biological or legally adopted child who, as at 31 December of the tax year, is:
i. under 18 years of age
ii. a secondary education student under 20 years of age
iii. a National Guard serviceman under 21 years of age
iv. a university student under 24 years of age
v. a child permanently incapable of self-support, regardless of age
(19) What criteria apply for granting the child allowance to single-parent families?
The same income criteria for families apply depending on the number of children, and the amount of the allowance granted to the single parent for each dependent child is doubled.
(20) Is a parent who has joint parental responsibility for their dependent child but does not live with them entitled to the dependent child allowance?
Yes, subject to the following conditions:
If they are single, the income criterion of €40,000 applies.
If they are a member of a family, i.e. a spouse or partner in a Civil Partnership, in which no other children live under the same roof, the income criterion of €100,000 applies.
If they are a member of a family, i.e. a spouse or partner in a Civil Partnership, in which other children (either common or of one of the two) live under the same roof, the income criterion applies depending on the number of children.
If they live with a partner without a Civil Partnership with whom they have a common child, they are considered a member of a family and the income criterion applies depending on the number of children living with them under the same roof.
(1) What is the amount of the deduction for interest on a serviced mortgage loan for the purchase or construction of a main residence, or for rent paid for the use of a main residence in Cyprus?
A deduction is granted for the amount of interest and/or rent paid during the year, with a maximum deduction of €2,000 for each spouse or cohabitant or single person.
(2) If during the same year I have paid both interest and rent for a main residence, am I entitled to a €2,000 deduction for interest and €2,000 for rent?
No, the maximum deduction that can be claimed in total for interest and rent in the same tax year is €2,000.
(3) If the mortgage loan has been restructured, is it considered a serviced loan and does the €2,000 deduction apply?
Yes, provided that the installments are paid regularly until 31 December of the tax year.
(4) Is the deduction for interest on a serviced loan and rent for the use of a main residence based on income criteria?
Yes, it is based on the income criteria determined according to the number of children in the family.
(5) If the amount of interest on a serviced mortgage loan and/or the rent payable is greater or less than €2,000, what amount is granted as a deduction?
If it is greater, it is limited to €2,000, and if it is less, the actual amount of interest or rent paid is granted.
(6) What are the further conditions for granting the interest or rent deduction?
For the interest deduction, the residence must be owned by at least one of the two spouses or cohabitants or the single person.
For the interest deduction, the serviced loan must be in the name of at least one of the two spouses or cohabitants or the single person.
Any state grants or allowances for mortgage interest or rent reduce the amount of expense for which the deduction is granted.
Rent must be paid to the owner of the property via bank transfer, card, or recognized electronic payment method.
(1) What is the amount of the deduction granted for capital expenditures on energy upgrades of the primary residence and the purchase of an electric vehicle?
A deduction is granted for the actual amount of the expenditure, with a maximum deduction of €1,000 per spouse or cohabitant or single individual per tax year.
(2) Is this deduction based on income criteria determined according to the number of children in the family?
Yes, it is based on income criteria.
(3) What type of capital expenditures does the deduction cover?
- Improvement of the energy efficiency of the primary residence in Cyprus,
• Technical energy efficiency systems, renewable energy systems, as well as electricity storage batteries, in the primary residence in Cyprus,
• Electric vehicles registered with the Department of Road Transport.
(4) Can a deduction greater than €1,000 be granted to any individual if the actual expenditure is higher?
The maximum deduction granted to any individual in a tax year cannot exceed €1,000. However, if the expenditure exceeds the total deduction granted to each spouse, cohabitant, or single individual, the remaining expenditure can be carried forward and a deduction of up to €1,000 can be granted over the next four years, subject to income criteria for each tax year.
(5) What are the further conditions for granting the deduction for capital expenditures on energy upgrades?
- Any state grant or public subsidy (e.g., the “Photovoltaics for All” scheme) reduces the amount of the expenditure eligible for the deduction.
• The primary residence for which the energy upgrade is carried out must be owned by at least one of the two spouses/cohabitants or the single individual.
• The deduction provided to both spouses/cohabitants or the single individual cannot exceed the total actual expenditure for the energy upgrade of the residence or the purchase of an electric vehicle.
(6) What does “improvement of the energy efficiency of the primary residence” mean?
It means expenditures relating to:
(i) Insulation of horizontal structural elements
(ii) Insulation of walls and structural elements of the load-bearing construction
(iii) Replacement of frames
(7) What does “expenditures for technical energy efficiency systems, renewable energy systems, and electricity storage batteries in the primary residence” mean?
It means expenditures relating to:
(i) Insulation of hot water pipes
(ii) Heat recovery systems
(iii) Energy management systems
(iv) Installation of high-efficiency combined heat and power systems
(v) Installation of photovoltaic systems, net-billing or standalone
(vi) Purchase and installation of batteries for electricity storage
(8) What does “expenditures for electric vehicles” mean?
It means expenditures relating to:
(i) New electric vehicles of category M1
(ii) Charging stations for electric vehicles, category 1 AC (alternating current) or category 2 DC (direct current)
A new electric vehicle is one that:
• has been delivered within 6 months from the date of its first registration, or has traveled up to 6,000 kilometers, whichever occurs first.
(1) What is the amount of the deduction for home insurance against natural disasters such as fire, earthquake, flood, etc.?
The maximum deduction for each owner-individual is €500 for all premiums and for all residences, per tax year.
(2) Does this deduction only apply to the primary residence?
No, it also applies to a vacation home or a rented property.
(3) Is this deduction based on income criteria?
No, this deduction is not based on income criteria.
(4) How does the home insurance deduction affect the maximum 1/5 limit?
The deduction for home insurance against natural disasters reduces the net income on which the 1/5 limitation is calculated and is not included in the deductions for insurance premiums and contributions to funds and plans, which are limited to the 1/5 threshold of net income.
(5) Does the deduction exclusively cover insurance against natural disasters?
No, it can also include coverage beyond natural disasters, e.g., coverage against theft.
(1) In addition to the life insurance deduction, is a deduction also granted for premiums paid for permanent or temporary, total or partial disability?
Yes, in addition to the life insurance deduction, a deduction is granted for premiums paid from 1.1.2026 for permanent or temporary, total or partial disability.
(2) Does the 7% limit apply?
Yes, the deduction for such an insurance policy, like life insurance, is limited to 7% of the coverage amount payable by the insurance company in case of disability.
(3) Is the deduction included in the maximum 1/5 limit?
Yes, this deduction is included in the deductions for insurance premiums and contributions to funds and plans, which are limited to the 1/5 threshold of net income.
(4) How is partial surrender of a life insurance policy taxed?
The tax reform provides for the taxation of partial surrender of an insurance policy as follows:
(a) If 4 years have not elapsed from the policy date and a partial surrender occurs, 50% of the amount of the partial surrender is added to the taxable income of the year in which the partial surrender occurred and is taxed.
(b) If 4 years have elapsed from the policy date and a partial surrender occurs thereafter, 50% of the surrender amount exceeding the value of the gross surrender* on 31 December of the fourth year preceding the year of the partial surrender is added to taxable income and taxed.
The gross surrender amount is reduced by the amount by which partial surrenders in the previous three years exceeded the premiums paid in those three years.
*The gross surrender value is a technical insurance term and is the amount the insurance company would pay if the policy were fully surrendered on a specific date.
(1) Do I have to pay a special defence contribution on rental income?
No, it has been abolished from 1 January 2026, and from this date, rental income is taxed only with income tax and GESY contributions.
(2) How and when do I pay income tax on rental income from 2026 onwards?
Income tax on rental income is paid through the submission of provisional income tax, in two installments on 31/7 and 31/12 of each tax year.
(3) If my tenant is a legal entity (company), will it continue to withhold GESY contributions when paying rent?
Yes, legal entities are still required to withhold GESY contributions when paying rent.
(4) If GESY contributions have not been withheld when paying rent, how and when do I pay them?
In such a case, GESY contributions are paid through self-assessment in two installments on 31/7 and 31/12 of each tax year.
(5) Can I continue to collect rent in cash or by cheque?
From 1 July 2026, rent collection for properties in Cyprus must be carried out exclusively via:
(a) Bank transfer, or
(b) Payment by debit or credit card, or
(c) Any other recognized electronic payment method.
In the case of a person who is a tax resident of the Republic, tax is imposed on the income acquired or derived from sources both inside and outside the Republic.
In the case of a person who is not a tax resident of the Republic, tax is imposed on income obtained or derived from sources within the Republic only, that is:
1) any profits or other benefits from a permanent establishment located in the Republic,
2) profits or other benefits from any office or salaried services exercised in the Republic.
A person who remains in the Republic for a period exceeding in total 183 days during the tax year.
(1) Does not remain in any other state for more than 183 days within the same tax year.
(2) Is not a tax resident in any other state for the same tax year.
(3) Remains in Cyprus for at least 60 days in the same tax year.
(4) Runs a business in Cyprus or is employed in Cyprus or holds an office in a tax resident company in Cyprus, on December 31 of each tax year.
(5) Maintains a permanent residence in the Republic which he owns or rents.
It is pointed out that if during the tax year the exercise of business / employment or the holding of an office is terminated, then the person ceases to be considered a resident of the Republic for that tax year.
Taxable Income |
Tax Rates |
Tax Amount |
Accu.Tax |
€0 – €19.500 |
0% |
€ 0 |
€ 0 |
€19.501 – €28.000 |
20% |
€ 1,700 |
€ 1,700 |
€28.001 – €36.300 |
25% |
€ 2,075 |
€ 3,775 |
€36.301 – €60.000 |
30% |
€ 7,110 |
€ 10,885 |
€60.001 και άνω |
35% |
(1) The amount received on retirement or commutation of pension or as death gratuity.
(2) The amount representing repayment from life insurance or from approved provident funds.
(3) Interest income.
(4) Dividend income.
(5) Profits from disposal of securities.
(6) The remuneration from the provision of salaried services outside the Republic to an employer who is not resident in the Republic, or in a permanent establishment outside the Republic of an employer who is resident in the Republic, provided that the period of services abroad for a tax year exceeds 90 days.
(7) Profits from a permanent establishment maintained abroad (provided that more than 50% of the activities of the permanent establishment do not directly or indirectly yield investment income and the foreign tax is not significantly lower than the tax rate in Cyprus).
(8) Profits from the production of films, television series or other audiovisual programs. The amount is limited to the lower of 35% of eligible expenses and 50% of taxable income. The limited amount can be carried over to the next 5 years.
(9) 20% of the remuneration from the first employment in the Republic which began after July 26, 2022 until the year 2027, by a person who was employed outside the Republic by an employer who is not a resident of the Republic for three consecutive years, immediately before the beginning of his employment in the Republic. The tax exemption is granted for 7 years, from the year following the start of the first employment in the Republic. For the previous exemption that was granted to employments that began within the year 2012 and until July 26, 2022, the tax exemption is calculated at 20% of the remuneration (maximum €8,550 per year) and was valid for 5 years. Individuals who qualified for the exemption before its end date (ie 26 July 2022) will continue to benefit for the relevant five-year period.
(10) 50% of the remuneration from employment exercised in the Republic by a person who was not a resident of the Republic for at least 15 consecutive years, immediately before the start of his first employment in the Republic, provided that the start of the first employment in the Republic takes place from January 1, 2022 onwards and the remuneration from such employment exceeds €55,000.
The exemption is granted for 17 years, from the month of employment in the Republic and may also be granted to the following persons:
• people whose employment started before 1 January 2022, if the start date of the first employment was between 2016-2021, their salary was more than €55,000 per year, or if not, more than €55,000 per year within six months of 26 July 2022.
• existing employees who benefited from the 50% exemption and have continuous employment in Cyprus until the year 2021.
It is noted that individuals who qualified for the previous exemption granted in employment that began before its termination date (i.e. 26 July 2022) will continue to benefit for the relevant ten-year period, unless the individual qualifies for the new exemption of Article 8(23A).
• Memberships in guilds or professional associations – 100%
• Donations to approved charities – 100%
• Expenses for building rents receivable – 20% of rents
• Interest for rental building – 100%
• Expenses for maintenance of listed building – up to €700, €1100 or €1200 for each sq.m. depending on the area of the building.
Contributions that are deductible for the purpose of calculating the taxable income of a natural person:
• Social Insurance Fund
• General Health System (GESY)
• Approved Provident and Pension Funds
• Medical Care Plan
The total amount of the health fund and health insurance
limited to 2,0% of gross income.
• Life insurance premiums
Annual premiums are limited to 7% of the insured amount.
In case of cancellation of a life insurance policy within 6 years from the date of its issue, a percentage of the premiums granted as a discount is taxed, as follows:
− cancellation within 3 years 30%
− cancellation from 4 to 6 years 20%
*The DEDUCTION is limited to 1/5 of the taxable income as calculated before deducting this deduction.
ASSOCIATES
LATEST NEWS!
Extension of the Income Tax Return Submission Deadline for Individuals for the Tax Year
The Tax Department informs that, based on the Council of
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Start of Submission of the Individual Income Tax Return for the Tax Year 2024
The Tax Department informs that the submission of the Individual
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Submission of Individual Income Tax Return 2023
The Tax Department announces that the submission of the Individual
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Cooperation Agreement with POASO for the preparation and submission of members’ tax returns.
POASO has signed a Cooperation Agreement with e-TaxCy Services, Tax
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Registration in the Tax Register via the Taxpayer Portal TFA
The Tax Department announces that, as of January 8, 2024,
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