The submission of 2023 tax returns has started
Employees, pensioners and self-employed persons whose gross income for the year 2023 is more than €19,500 are obliged to file a tax return. The deadline for submitting an individual income tax return for the 2023 tax year is 31 July 2024, and any submission of a tax return after 31 July 2024 is considered late filing and is subject to a €100 fine.
Important information:
**You are a resident of the Republic of Cyprus if: You stayed in the Republic in 2023 for one or more periods that in total exceed 183 days or under the EU Protocol on Privileges and Immunities or, you stayed in the Republic for , in the Republic, you were not a resident in another country for more than 183 days, you were not a tax resident in another country and you owned your own business or were employed or held office in the Republic that did not terminate on 31/12/2023.
If one of the above conditions applies then you are a tax resident of the Republic and you must declare your income from sources both within and outside the Republic.
You are not a resident of the Republic of Cyprus if:
None of the above conditions apply and you should only declare your income from sources within the Republic and choose your country of tax residence.
In addition to income from employment or self-employment, you must also declare the following if applicable:
For rental income, declare rental income earned or accrued during the tax year in the Republic, and/or outside the Republic.
You should declare the registration number of the rented premises as indicated on the title deed.
The clarifications note that you must declare the acquisition cost of the rental property attributable to your share, however it was acquired, e.g. by construction, purchase, donation, inheritance, etc., in order to calculate the amount of the capital deduction you may claim.
It is also not compulsory to fill in the tenant’s tax identification number/ID number when the tenant is an individual.
In case you are a landlord, even though no title has been issued yet, or you have transferred the property within the year, then capital allowances are granted or not granted accordingly.
Declare dividend income in the Republic, and/or outside the Republic, provided that you are a tax resident of the Republic. Dividend income is not subject to income tax. It is, however, subject to Defence and GESY tax.For the redemption of the life insurance policy is completed only in case of redemption of a life insurance policy before the expiry of 6 years from the date of commencement of the policy.
Specifically: If you redeem your policy within 3 years from the commencement of the policy, then 30% of the total premium discount granted to you will be taken into account as additional income in the tax computation.
If you redeem your policy between the 4th and 6th year from inception, then 20% of the total premium discount granted to you will be taken into account as additional income in the tax calculation
