Moving to a new country is never simple. Not only do you have to relocate your entire life, you also have visas to organise, jobs to find and an entire new tax system to familiarize yourself with. When you’re contracting in Cyprus there are several issues which could arise relating to taxation, and learning what to expect helps you tackle them more effectively. Doing your own taxes might not be the best option, but employers don’t usually work out contractors’ taxes through the pay as you earn (PAYE) system. This means you’re either faced with several hours in administrative hell or will have to find a suitable alternative for dealing with Cyprus taxation.
Do You Only Have to Pay Income Tax in Cyprus?
One of the most confusing aspects of Cypriot tax law is whether or not you’ll still be eligible to pay tax in your home country for the money you earn in Cyprus. Most countries have agreements in place to guarantee that you don’t have to pay taxes on the same money twice, but you might still have to make some payments in your home country. The rules regarding this aren’t clear, so it’s useful to get advice from experts in Cyprus taxation.
Are There any Deductions That Can Reduce Income Tax in Cyprus?
You might be eligible for some deductions whilst you’re working in Cyprus, but learning all of the different possibilities is extremely time-consuming. The basic rate of income tax can be anywhere from 0 to 30 percent, and there is also public health insurance and social security to worry about. To keep more of your money, it’s useful to find an expert in Cyprus taxation and business culture in Cyprus to explain the various possible benefits to you. You might not be eligible for them all, but learning about expat tax deductions is extremely important.
How Do I Pay Income Tax in Cyprus?
Permanent employees are fortunate because their employers will usually process their Cyprus income tax through the PAYE system. If you’re contracting in Cyprus, you’ll probably have to calculate and make your tax payments yourself. You’ll have to read up on tax laws, fill in myriad forms and spend hours hunched over a calculator working everything out. There is an easier way for contractors to pay their income tax in Cyprus and it almost entirely removes the admin work.
How Do Umbrella Companies Help with Cyprus Taxation?
An umbrella company can make organising your income tax in Cyprus a lot easier for your contract work in Cyprus. The basic premise is that by processing your wages through them, they technically become your permanent employer. This means that they can handle your taxes through a PAYE system, but you’re not tied to any particular contract or just one client. You work as you ordinarily would, submit your timesheets to them and receive a prompt payment. They’re experts in local tax law, so you’ll also keep more of your earnings.
How We Can Help with Cyprus Taxation
We work closely with several umbrella companies in Cyprus, and can help you find one to handle your tax payments for you. We have a detailed knowledge of the specialist services they provide, and we’ll suggest the best options for your needs. If you just have a question about Cyprus taxation, we’ll ask the experts for an up-to-date and reliable answer. If you’re a contractor in fields such as telecommunications, business analysis, IT project management, software development, testing or oil and gas, we can help you keep more of your earnings. Our service is completely free, and you’re under no obligation. Contact us today for help with Cyprus taxation!