Get Better Income Taxes Working From Cyprus For Your eShop
When you become a tax-paying citizen of Cyprus, you will need to pay taxes to the Cyprus government. To become a Cypriot resident, you need to have spent more than 183 days a year in the country. There is also an option of the 60-day rule to become a citizen. Whether you draw income from within Cyprus or from jobs in other countries, you need to pay taxes here. However, there are specific rules on what to pay and how to pay if you are running your E-Commerce business. Cyprus as such has one of the lowest tax rates in the entire EU. Cyprus-based businesses have to pay taxes on their worldwide income at a rate of 12.5%.
Let us check out the tax details for you to know and pay in time.
• Taxes as a Resident and as a Non-resident
If you are a resident of Cyprus, you need to pay taxes on any income from any of the sources mentioned here. You will have to pay taxes on rents, profits, dividends, and income. As a non-resident too, you need to pay taxes on rents, pensions, income from any companies in Cyprus or even profits from businesses in Cyprus. In short, you are required paying taxes only on income earned in the island country of Cyprus.
• More about Other Specific Tax Slabs
If you are disposing an immovable property, and earn capital gains, you have to pay a tax of 20%. The typical VAT rate in Cyprus is 19%.
• Save on Taxes
You will be able to save your income tax in Cyprus if you are drawing a lump sum payment on the retirement or commutation of pension or even the gratuity. If you are taking a scholarship for higher studies, you will not have tax exemptions of 100%. Likewise, even as you incur capital sums from life insurance policies, PF, and approved medical schemes, you get 100% exemption.
Many people invest in running their e-commerce business from Cyprus. Its coastal location fuels up its excellent logistics. It is also a budding real estate market for those willing to become a citizen here and start a business right away. Make use of the tax laws and get the best while living in Cyprus. Whether for tax saving on their income from their eshop or simply for getting a better quality of life, one can always benefit while in Cyprus.