Citizen’s Advice Cyprus

The only thing certain in life is death and taxes, Benjamin Franklin is credited with saying this, and who can disagree with him

In north Cyprus if you purchased a property for investment purposes and subsequently earned an income from renting it out, then yes, you have to pay tax on that income.

At present it is set at 10% and as was confirmed in the Cyprus Today recently and in a face to face meeting at the Ministry of Finance, the Government are determined to collect this tax.   You have tax deducted at source on any savings income with your Bank in north Cyprus at the same rate.

It is true to say that Income Tax is payable on rental income anywhere in the world so why should north Cyprus be any differenct.   Indeed it is the duty and obligation of anyone receiving rental income to pay this tax.  If you wish CAC to undertake paying this tax on your behalf, membership of Citizens Advice Cyprus entitles the member to this service.   It also entitles the member to advice for one year.  If as the result of receiving advice the member needs further action, this will incur a fee to cover the time and the cost of the action required.   If CAC is either unable or unqualified to take action, the fee required by the relevent professional can be negotiated by CAC or the member, whichever is the member’s preference.

The Government have many ways to check if you are paying this tax and have declared their intention to do just this.  Stamped rental contracts are easily checked, the internet where holiday lettings are advertised and of course, simply by knocking on the door.   The Government can and do check these avenues.

Membership of Citizens Advice Cyprus is £50 per year.

Pembe Ibrahim

www.citizensadvicecyprus.com 

Print Friendly, PDF & Email

Comments are closed.