What Cyprus tax returns & taxes are due in 2021?
From 1st July self assessed temporary income tax payments are due by Cyprus tax residents with the final deadline for payment being 31 July 2021.
This includes self employed, expat contractors and pensioners.
Property Rental income is chargeable to income tax.
If the estimated net income for the whole year of 2021 is over the personal allowance of €19,500 for the year then Cyprus income tax is due is due in two instalments in July and December. All returns and payments are online.
ProACT Cyprus can help with tax returns and rebates.
Going Flat Rate
Cyprus breaks tax liability to different types of income. Income tax is only payable of earned income and a portion of rental income.
Expat Pension income is taxed at a Flat Rate of 5% on world wide income. The is a small personal allowance of around €3400, so smaller pensions may be better off taxed under self assessment and pay less or no income tax.
Income from dividends and savings are charged a flat rate of tax unrelated to income tax liability.
€1000 of dividend income has a 17% tax liability of €170.
Deposit Interest is taxed at 30% so €1000 saving interest has a €300 tax liability.
Savings and Property rental income are due a 3% Flat Rate tax without a personal allowance.
The property rental flat rate tax is in addition to any income tax liability.
Health taxes in Cyprus are paid at source on Cyprus income or with Social Insurance payments. All other worldwide income for expats is liable to a worldwide health tax of 2.65%
This could include income also taxed under self assessment for income tax and those incomes charged flat rate tax only.
So €100,000 of worldwide income from business, dividends, savings and property could pay an additional €2650 health tax in Cyprus.
Flat rate taxes are due quarterly or monthly, and again paid online. There is tax due at end of second quarter and maybe earlier in the July tax year.
Key Dates
31 July 2021 - 1st instalment of 2021 temporary tax due between 1 - 31 July
30 September 2021 - Final 2020 tax return due (extended)
31 December 2021 - 2nd installment of 2021 temporary tax due between 1 - 31 December
For a Free online review of you tax residency for last and this tax year contact us.
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