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The taxation system in Nicosia, Cyprus is composed of both direct and indirect taxes. Direct taxes include corporate tax, personal income tax, special contribution for defense, capital gains tax, immovable property tax, and inheritance tax. Indirect taxes include Value Added Tax (VAT), customs and excise duties, and stamp duty. The Cyprus tax system is known for its beneficial tax incentives which makes it an attractive destination for business structures and investments.
Navigating the complexities of the Cyprus taxation system can be challenging for individuals and businesses alike. Whether you're setting up a new business, dealing with real estate transaction taxes, filing an annual tax return, or facing a tax audit, having a competent tax lawyer by your side can be invaluable. A good tax lawyer can provide legal advice, help with compliance, represent you in dealings with the tax authorities, and protect your rights during audits or disputes.
Corporate tax in Cyprus is fixed at 12.5%, one of the lowest rates in the European Union. Income tax for individuals is progressive, ranging from 0% to 35%. The VAT standard rate is 19%, with reduced rates and exemptions applicable for certain goods and services. The Special Defense Contribution is levied on certain income types of Cyprus tax residents and largely exempt for non-tax residents. Cyprus also has a wide network of double tax treaties, to avoid double taxation of the same income in two different countries.
Foreign income is not taxed for individuals that are not Cyprus tax residents. For tax residents, certain foreign income may be exempt under specific conditions. Capital gains from the sale of overseas real estate by Cyprus residents are not taxed, except for the foreign exchange difference, if any.
The tax year in Cyprus is the same as the calendar year. Final tax payments are due by the end of the year, while provisional tax payments are due on July 31 and December 31. Annual tax returns must be submitted by April 30 of the following year.
Fines, penalties, and interest charges may be imposed for non-compliance, late filing, or late payment of taxes. Penalties vary depending on the type and severity of the infraction, and can be severe.
Yes, Cyprus has double tax treaties with more than 60 countries to avoid double taxation and enable cooperation between Cyprus and overseas tax authorities.
Yes, a tax lawyer can act on your behalf in dealings with tax authorities, including correspondence, negotiations, audits, and disputes.
You may refer to the official Cyprus Ministry of Finance website for more detailed information on taxation in Cyprus. Another good resource is the website of the Tax Department of Cyprus, which has extensive information on various topics related to taxes in Cyprus.
If you require legal assistance in tax matters in Nicosia, Cyprus, look for a law firm with expertise in Cyprus tax law. It is recommended to consult with a lawyer before taking any significant decision relating to your tax situation. Feel free to ask potential lawyers about their experience, pricing, and strategies to help with your specific tax matter.
