Taxation Of Foreign Employees

The rules for determining the income liable to tax are the same as those applying in the case of other employees. A foreign employee of an offshore entity is, therefore, liable to tax in respect of his emoluments irrespective of whether he is working in Cyprus or abroad and his emoluments include, in addition to the salary, benefits in kind accruing to him in respect of his office or employment.

THE MAIN CONCESSIONS GRANTED TO OFFSHORE EMPLOYEES ARE SUMMARISED BELOW:

1. Foreign employees working outside Cyprus are taxed at 10% of the normal rates, but are not entitled to personal allowances. However, the remuneration of such employees is completely exempt from income tax if received in or through Cyprus;