an established audit office, which provides premium quality professional services to a wide range of businesses.

Registration
VAT is imposed on the supply of goods and provision of services in Cyprus, as well as on the acquisition of goods from the EU and the importation of goods into Cyprus.
Taxable persons charge VAT on their taxable supplies (output tax) and are charged with VAT on goods or services which they receive (input tax). If output tax in a VAT period exceeds total input tax, a payment has to be made to the state. If input tax exceeds output tax, the excess input tax is carried forward as a credit and set off against future output VAT.

Persons that have a business establishment or other permanent establishment in the Republic of Cyprus in relation to its business activities will constitute an established person in Cyprus for registration purposes. For persons established in Cyprus registration is compulsory for businesses with (i) turnover subject to VAT in excess of €15.600 during the 12 preceding months or (ii) expected turnover subject to VAT in excess of €15.600 within the next 30 days. Businesses with turnover of less than €15.600 or with supplies that are outside the scope of VAT but for which the right to claim the amount of the related input VAT is granted, have the option to register on a voluntary basis. An obligation for registration also arises for businesses which make acquisition of goods from other EU Member States in excess of €10.251,61 during any calendar year.
The Standard VAT rate is 19%.

Cases with 0% VAT rate
Rent and repair of ships and aeroplanes. Services directly related with ship needs.
Goods received from EU members states as long as the supplier is VAT registered person

Cases with 5% VAT rate
Artist’s services (i.e. composers, singers, writers)
Fertilisers, pesticides, animal feed, seeds, ice cream, nuts, books, newspapers, magazines, gas, some categories of disabled person’s equipment.
Rural buses fairs
Rent of camping places and trailers
Hairdressing Services. Renovation Services to a VAT registered person (painter, carpenter, plumper, electrician, builder) . 5% is imposed on the materials needed as long as it is up to 50% of the cost price on Services purchased for renovation. From there on materials are imposed the 19% rate.
Confectionery, industrial drinks, fruit juices (sodas, alcoholic drinks are excluded).
Vaccines (there are some exceptions), anti-pregnancy products, women’s health protection products, medical equipment for disabled persons, child car seats.
Fair, concert, museum, zoos, cinema, exhibitions, cultural events, entrance to athletic events and rental of athletic spaces.
Repairs of medical equipment for disabled persons, dental and dentist services. Medical examinations, cosmetic surgery especially for beaty purposes are exempt.
School canteens.
Food for human consumption (alcoholic drinks are exempt), medicine delivery that is used for disease treatment and cure for humans as well as for animals, Vaccine delivery used in medicine, food and drinks delivery (alcoholic drinks are exempt).
Purchase or Construction of the main Residence (if in compliance with of the 5th Section of N95 (I)/2000, Table 5.
Repair & Renovation of the main Residence.

VAT EXEMPTIONS
Finance Services (i.e. banking and insurance)
Lottery tickets and betting coupons for football and horse racing.
Medical treatment (i.e. doctors, physiotherapists, chiropractors)
Social providence
Education
Athleticism
Cultural Services.

Social Insurance
Employer’s Contribution 8.3%
Employee’s Contribution 8.3%

Other Employer’s Contributions
Social Cohesion Fund 2%
Redundancy Fund 1.2%
Industrial Training Fund 0.5%
Holiday fund (unless exempt) 8-11%

The maximum amount paid for contributions is €57.408, except for the Social Cohesion fund, on which there is an unlimited amount.

National Health Insurance
The rates are:
On employee’s own emoluments 2.65%
On employers on behalf of their employees 2.90%
Self-employed 4%
Pensions 2.65%
Officer’s Remunerations 2.65%
Rental, Interest, dividend income 2.65%
State’s contribution to emoluments and pensions paid 4.70%

Transfer fees by the department of land and Survey
Rates:
Up to €85.000 3%
From €85.001-€170.000 5%
Over €170.000 8%

Note:
No transfer fees are payable if VAT is applicable upon purchasing the immovable property.
The above transfer fees are reduced by 50% in case the purchase of immovable property is not subject to VAT. 

Cyprus, officially named The Republic of Cyprus, is located in the Eastern Mediterranean Sea. It is the third largest island in the Mediterranean and is situated amongst 3 continents, Europe, Asia and Africa.

Cyprus is a member of the European Union since 1 May 2004, and joined the Eurozone on 1st January 2008. It has an advanced, high income economy and a very high human development. Financial Services, real estate, shipping and tourism are major areas of the economy. In addition, significant quantities of natural gas have been discovered in Cyprus’ exclusive economic zone.

Cyprus location, climate, safe standard of living, it’s high human development and the advantageous tax rates, constitutes the island an attractive international financial centre.