Rental income is subject to:
(1) Income Tax if annual gross total income, including rental income, is more than €19500.
(2) Special Defense Contribution(SDC) if you are a permanent resident of Cyprus, calculated on a rate of 3% on the 75% of the annual gross rental income.
Irrespectively of the amount of rental income received you are obliged:
- If the tenant is an Individual, to file a self assessment for defense contribution on rental income twice a year (at 30/06 and 31/12 of each year) and pay the SCD (payment code 604)
- If the tenant is a Company then the tenant himself deducts and pays the defense contribution on rental income (payment code 614)
(3) GeSY contribution
Rental income is subject to GeSY contribution on a rate of 2,65% of gross rental income. Rental income is exempt from GeSY contribution if the owner of the leasing property is a legal person.
Irrespectively of the amount of rental income received you are obliged:
- If the tenant is an Individual , to file a self assessment for GeSY contribution on rental income twice a year (at 30/06 and 31/12 of each year) and pay the GeSY(payment code 704)
-If the tenant is a company then the tenant himself deducts and pays the GeSY contribution on rental income (payment code 714)
(4) VAT
VAT is imposed on leasing properties on a rate of 19% in the case where the lessee is registered as a VAT taxpayer and carries out taxable transactions.
Rental income can be exempt from VAT payment if requested, but such an exemption is permanent and cannot be revoked.
Information related to VAT imposed on rental income can be found in Circular 220 (available in Greek).
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Last Update:
06/09/2021 01:20:16 PM
