| Taxable Income (€) | Tax Rate (%) | Cumulative tax (€) |
| Up to 19,500 | 0 | |
| 19,501 – 28,000 | 20 | 1,700 |
| 28,001 – 36,300 | 25 | 3,775 |
| Over 36,300 | 30 |
Foreign pensions and property income are taxed at different rates.
Deductions
Before you’re liable for income tax, you can subtract certain deductions from your gross income, including the following:
Contributions or premiums paid to widows’ and orphans’ pension funds or schemes;
Donations to approved charitable funds;
Membership fees for trade and professional organisations, if membership is mandatory;
40 per cent of amounts deposited with a Housing Finance Corporation;
20 per cent of any rental income from property in Cyprus;
Interest on a loan taken out to purchase or improve a rental property.
Depreciation on a rental property (3 per cent deduction);
Social security contributions, provident fund, medical fund and pension fund contributions and life insurance contributions (the deduction is one-sixth of the chargeable income on all these payments);
Expenditure incurred for the maintenance of a listed building where a Preservation Order applies (the deduction depends on the square footage of the building).
In order to claim deductions relating to personal expenditure or family circumstances, it’s usually necessary to produce receipts.
Cash Grants
Under the 2003 tax reforms, tax allowances were either abolished or replaced by cash grants, as follows:
Child Grant – All families resident in Cyprus which have a gross family income below the threshold are entitled to a basic child grant and a supplementary grant.
Higher Education Grant – €2,563 per annum for each child receiving full-time higher education in Cyprus or at a foreign university;
Blind Grant – €3,417 per annum for blind people.