Cyprus Tax 2019
Cyprus income tax rates 2019
Personal tax rates for 2019
Foreign pensions have an optional special tax rate of 5% on amounts over €3,420.
Foreign pension tax rate
Should I pay the normal tax rate or special rate on my foreign pensions?
You can choose whether to pay the standard tax rate on your foreign pension(s), or the special tax rate. This is not an additional tax.
Your choice will depend on whichever option results in less tax.
Example 1
John has a UK state pension of €10,000 and a private UK pension of €5,000 per annum for a total income of €15,000.
John would chose to declare his pensions under the normal income tax rates as hit total income is below €19,500, of which all income is tax free.
Example 2
Jennifer has a UK state pension of €10,000 and a UK private pension of €20,000 for a total income of €30,000 per annum.
If she were to declare her income under the normal tax rate then her tax bill would be as follows:
Her total tax bill would be €2200.
If however she elected to have her foreign pensions taxed under the special foreign pensions tax rate of 5% her tax will would be as follows:
Jennifer would therefore elect to have her foreign pensions taxed under the special rate of 5%.
Health Tax
A health tax is now payable by all tax residents of Cyprus at the following rates:
