Tax In Cyprus

One of the most consistently challenging aspects of contracting in Cyprus is complying with the country’s tax system. Whether you’re a contractor or a permanent employee, you have to pay tax on all of your earnings whilst you’re in the country. As well as paying tax in Cyprus, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. Do you get double taxation in Cyprus? It will depend on your nationality and the nature of your assignment in Cyprus. Getting to grips with the basics of income tax in Cyprus and understanding your options helps you work out the best way to organise your affairs.

Paying Income Tax in Cyprus through Your Employer

If you’re working in Cyprus under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Cyprus for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Cyprus, but contractors may not be offered this service because of their short stay with each employer.

Tax In Cyprus

Working Out Income Tax in Cyprus Yourself

Anybody who can’t pay their tax in Cyprus through PAYE is left with the prospect of filing a tax return and doing everything themselves. Do you know much about Cypriot Tax Law? Does Cyprus have a tax treaty with your home country? You will need to find out or find someone who can help! Not only does this eat into your free time, it’s also exceptionally difficult to get the most out of the system. The rules change frequently, so if you’re new to it you may be working on out-dated research and end up paying too much. Income tax in Cyprus can be anything from 0 to 30 percent, and you need to be sure you are placed in the correct tax brackets.

Using an Umbrella Company for Income Tax in Cyprus

Contractors in Cyprus are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Cypriot umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records). The companies are experts in Cyprus taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Cypriot tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax in Cyprus

We work with numerous umbrella companies in Cyprus, many of whom are experts in tax and immigration laws. If you have any questions about tax in Cyprus, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We also have a comprehensive knowledge of the different services they provide, and we can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Cyprus work permit. Our advice is 100 percent free, and it comes with no obligations. You will be paying taxes in Cyprus but without the overhead of directly dealing with the Cypriot tax authorities. Get in touch with us today for some reliable advice on tax in Cyprus!

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