Cyprus. Tax residency and Pension Income Tax
All Cyprus tax residents are taxed on income accrued or derived
from all sources in Cyprus and abroad. Individuals who are not residents
for tax in Cyprus are taxed on income from sources in Cyprus.
An
individual is resident for tax in Cyprus if he spends more than 183 days
in any one calendar year in Cyprus.
Days
in and out of Cyprus are calculated as follows:
•
The day of departure from Cyprus counts as a day of residence outside
Cyprus.
• The day of arrival in Cyprus counts as a day of
residence in Cyprus.
• Arrival and departure from Cyprus in
the same day counts as one day of residence in Cyprus.
•
Departure and arrival in Cyprus in the same day counts as one day of
residence outside Cyprus.
Foreign pension such as income from
a QROPS is taxed at a concessionary rate of 5%. An annual exemption or
allowance of €3.417 is granted. (2008)
Cyprus removed
inheritance tax in January 2000 and there are no wealth taxes.
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