Personal Taxation FAQ - powered by TaxAppCy

The Personal Taxation FAQ was prepared by the team of experts TaxAppCy.

This FAQ is intended solely to provide general information and additional clarity on how the law applies in various situations. It should not be considered as comprehensive legal or tax advice. For personalized assistance you can contact TaxApp at 70007998 or via email at support@taxapp.cy for personalized assistance.

1. How to get a TIC number in Cyprus if I am not yet employed by a Cyprus company but want to declare my worldwide income?

TaxApp: You can apply for a Tax Identification Code (TIC) by registering on the Tax-For-All (TFA) platform. You may also check TaxApp’s ‘guide’ for further information: https://taxapp.cy/how-to-get-a-tax-number/.

2. Does my spouse need to obtain a Taxpayer Identification Number (TIN) if he/she works as a freelancer with clients from different countries?

TaxApp: We understand that the spouse lives and works in Cyprus. Individuals who are Cyprus tax residents and fall within the age group of 25 to 70 (inclusive) are required to submit an annual personal income tax return, regardless of whether they have earned income. Furthermore, individuals outside this age range are required to submit a tax return if they have earned taxable income. Therefore, a Tax Identification Number (TIN) should be obtained to submit an annual personal income tax return as well as report and pay the provisional income tax twice a year (if applicable).

3. If there was no income during the reporting period, do I need to file a tax return?

TaxApp: Individuals who are Cyprus tax residents and fall within the age group of 25 to 70 (inclusive) are required to submit an annual personal income tax return, regardless of whether they have earned income. Furthermore, individuals outside this age range are required to submit a tax return if they have earned taxable income.

4. How often do you need to submit tax reports and declarations in Cyprus?

TaxApp: Cyprus tax returns for ‘employees’ and for ‘the self-employed’ individuals (earning less than EUR 120.000 per year) should be filed annually by 31 July (statutory deadline) of the year following the relevant tax year.

5. What penalties are provided for late submission of reports?

TaxApp: There is a fixed fine for the late submission of the income tax return of EUR 150. Other penalties / fines for late tax-payment/s may also apply.

6. What tax obligations arise when receiving income into a Revolut account? How to properly declare such income?

TaxApp: Revolut is treated just like any other bank. Different tax implications arise depending on the type of income, as well as the recipient’s tax residency status. We suggest obtaining tax expert advice.

7. What tax obligations arise when working through freelance platforms such as Deel, Upwork, Freelancer, and others?

TaxApp: If you are a freelancer (i.e. ‘self-employed’) living and working in Cyprus, then you should register to the Cyprus tax authorities as ‘a self-employed’ (i.e. instead of as ‘an employee’) and report such income accordingly. VAT, VIES, Social Insurance, Gesy and other tax implications may also arise. We suggest obtaining tax expert advice.

8. How to correctly declare income received through such freelance platforms?

TaxApp: As stated above, freelancers should register as self-employed and report such income accordingly. Reporting (and taxation of such income) depend on several factors, and each case should be reviewed separately. You may also refer to our article for more information: https://taxapp.cy/working-in-cyprus-what-you-need-to-know/. We suggest obtaining tax expert advice.

9. Are there taxation specifics for income received through international stock exchanges?

TaxApp: Income from international stock exchanges (assuming ‘dividend-income’) should be declared (and should be subject to tax) in Cyprus if the taxpayer is a Cyprus tax resident and ‘domiciled’. Cyprus tax resident ‘non-domiciled’ individuals, as well as non-Cyprus tax resident individuals are not taxed (in Cyprus) on dividend income earned. Proceeds from sale of stocks / securities are not taxable in Cyprus. For non-listed shares, Cyprus tax implications may arise (more specifically ‘Capital Gains Tax’), if the company whose shares are disposed of directly / indirectly own Cyprus real estate property. You may check-out our article on the ‘non-dom certification’: https://taxapp.cy/other-services/non-dom-certificates/, as well as test our ‘non-dom’ questionnaire: https://taxapp.cy/domicile-test/

10. How to calculate tax on a bank deposit in another country? Do I need to attach any documents to the declaration in this case?

TaxApp: It depends on the individual’s tax residency and domicile status. Similar to dividends, interest income should be declared if the taxpayer is a Cyprus tax resident and domiciled. Cyprus tax resident ‘non-domiciled’ individuals, as well as non-Cyprus tax resident individuals are not taxed (in Cyprus) on interest income. Supporting documents may be requested (particularly in case of a tax examination) but there is no option to attach such documents to the tax return form. Finally, non-Cyprus tax implications may arise, of which the taxpayer should be aware of.

11. Does the Cyprus tax office in principle request any documents confirming the income indicated in the tax return?

TaxApp: Yes, the Cyprus tax office may request documents to confirm the income declared, such as contracts, invoices, bank statements etc.

12. Do you need a tax consultant for a freelancer working with clients from different countries?

TaxApp: Yes, we suggest obtaining tax expert advice. Income tax, VAT, VIES, Social Insurance, Gesy and other obligations may arise.

13. In what situations is it especially recommended to contact a tax consultant?

TaxApp: We always suggest contacting a tax consultant.

14. What is the average cost of tax consultant services in Cyprus?

TaxApp: The cost varies and depends on the services to be provided.

15. How can taxes be reduced? Are there any tax deductions for citizens of third countries?

TaxApp: Citizenship is irrelevant for tax purposes. There are several tax-deductions / tax-exemptions available, particularly for Cyprus expats. Notably, as far as Cyprus tax resident employees are concerned, there are two types of income tax exemptions (20% or 50%) that may be claimed subject to eligibility, which can substantially reduce the income tax liability of an individual employed in Cyprus. Regarding self-employed individuals, there are also several tax-deductions available, particularly in relation to business-related expenses. You may refer to our quick guides regarding the 20% and 50% tax exemptions.

https://taxapp.cy/wp-content/uploads/2023/03/20-tool.pdf (20%)

https://taxapp.cy/wp-content/uploads/2023/04/50.pdf (50%)

Cyprus’ non-dom regime exempts dividends and interest income from SDC (Special Defense Contribution).

Other tax deductions exist such as donations to approved charities (receipts are required for amounts of more than EUR300), contributions made to trade unions or professional bodies and any health, life or investment plans.

New tax deductions have been introduced from 1/1/2026 with the new tax reform such as those on dependent children, interest on mortgage, rental expense, EV purchase, green housing investment (thermal insulation etc.), home insurance against natural disasters and disability insurance.

16. How to fill out a declaration correctly if you work for a company that is not in Cyprus? Meaning that I work as an individual under a service contract. Where can I get the tax return template file that should be filled out (and is it necessary)? Where should I attach it then? (There is nothing like this in my personal account).

TaxApp: There are two types of Cyprus tax form, the tax form for the employees and the tax form for the self-employed. Depending on the applicable case the relevant tax-form should be submitted. No documents can be attached to the tax form but may be requested by the Cyprus tax authorities at some point later.

17. Do I need to attach any documents to the tax return to confirm income from work outside Cyprus?

TaxApp: No attachments are allowed. It is advisable to keep (maintain) any documents, for at least 6 years.

18. If I worked in another country (not for a Cyprus company) for 4 months at the beginning of the year before moving to Cyprus and at the end of the year I became a tax resident of Cyprus, how can I calculate the tax on this income? Do I understand correctly that in this case since I worked outside of Cyprus for a non-Cypriot company for more than 3 months in the reporting year I only have to pay GESY tax on this income?

TaxApp: Seek tax advice please. We suggest obtaining tax expert advice.

19. I am a TCN. I moved to Cyprus in May 2023. The number of days required to become a tax resident of Cyprus was reached in November 2023. Income from what period do I need to indicate in the declaration for 2023? From the beginning of 2023, from May 2023, from November 2023, or not at all?

TaxApp: We suggest obtaining tax expert advice.

20. I heard that even if I did not earn 22,000 euros in a calendar year and therefore did not submit a declaration, the bank can request a declaration from me. What should I do in this case?