An individual is considered to be resident if he is present in the Republic for a period exceeding 183 days in a tax year.
Tax resident individuals are taxed in Cyprus on their worldwide income.
Non-resident individuals are taxed in Cyprus only on their income arising or accruing in Cyprus.
TAX RATES
| Taxable Income € | Tax Rate % |
| 0-19,500 | 0 |
| 19,501 – 28,000 | 20 |
| 28,001 – 36,300 | 25 |
| 36,301 – 60,000 | 30 |
| 60,001 and over | 35 (this rate is applicable as from the year 2011 onwards) |
If the income from employment exceeds €100.000 per annum, a 50% deduction is allowed for such income for the first 5 years of employment. This deduction is given both to Cypriots and non-Cypriots only in the case where prior to their employment in Cyprus the individual was not a Cyprus tax resident.