Engaging Tax Compliance

ProACT Sam Orgill on Cyprus’s tax changes for 2024.

Cyprus tax compliance


Cyprus tax is a free for all exchange of information. The TFA Tax For All system is being rolled out to individuals in 2024. The allows an extension of the exchange of information available to the cyprus tax man.


It already covers VAT for sole traders / self employed and companies.

VAT registration should be made for all Cyprus business with either:
a. Turnover greater than €15600 in the last year.
b. Turnover to exceed €15600 in the next 30 days ahead year to date.

That’s turnover before expenses of €1300 per month.

VAT has a range of charges with the standard Cyprus rate being 19%.

When a business collects VAT it becomes a tax agent. So VAT received from customers less that paid out in expenses, is tax money due to Cyprus tax office – not part of business cash flow.

Currently VAT returns are quarterly with payment of tax due online. All registration and returns are online.


Social insurance information is linked into TFA. Sole traders pay a fixed rate of social insurance unless they submit a financial statement linked to their business income.

There is no personal allowance for sole traders. All business income is charged to Social Insurance.

These returns now need to be certified from 2024 and can be compared to VAT returns or not. All Social insurance information is fed into the Cyprus TFA.


Cyprus Healthcare GESY is dependant on social insurance payments for expats unless they have exemptions from their home country in the EU or EEA or UK.

If social insurance payments are not paid for expat Cyprus business then the expat loses access to Cyprus healthcare.


Cyprus banks and payment providers must collect source of funds information from all customers depositing funds into a bank including employees and sole traders. This information is exchanged and fed into the Cyprus Tax TFA.


All Cyprus businesses, including sole traders, and all individual Cyprus tax residents, for 2023 year tax returns onwards, are required to complete a tax return each year from 2024.

The Cyprus tax return links business earned income and other individual income from savings, investment and rentals worldwide

Everyone in Cyprus with any real income from January 2023 has some Cyprus tax to pay.

Business income pays VAT

Corporation tax rate for business is 12.5% on next audited income.

Fixed rate flat rate taxes on interest, dividend, rental and a ‘health tax’.

Pension income has a flat rate 5% tax rate.

Progressive income tax rates for individuals from 20-35%.

Only individual income and pension income has any personal allowance.

ProACT Know How

You may not have been required to complete a Cyprus tax return in the past as a Cyprus individual or business.

From 2024 for Cyprus full year tax returns for 2023 are a Tax For All TFA return to do.

Everyone will have some tax to pay.

If you need to tax register or return for Cyprus please contact us. www.proactpartnership.com/contact-us

ProACT Sam Orgill
ProACT Sam Says ©️Copyright 2024

Contact Us:

Web Contact-Us: www.proactpartnership.com/contact-us
OFFICE Tel: +357 26 819 424 (Cyprus)
WEB: www.proactpartnership.com
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