Personal Taxation - Expatriates

Salaried Income

Foreign employees working for local companies are taxed at full rates on their earned income.

Special tax privileges are granted to foreign nationals rendering salaried services to Cyprus registered offshore entities (companies or partnerships) and companies established in the Industrial Free Zone of Larnaca and to foreign employees of foreign companies rendering services outside Cyprus. These are:

• foreign employees of offshore entities (as well as businesses established in the Industrial Free Zone of Larnaca) employed in Cyprus are liable to income tax on their earnings at 50% of normal rates. Full personal allowances are allowed against taxable income. However, the taxpayer may opt to be taxed in the normal way where the special mode of taxing their income results in higher tax liability