The tax treatment of rental income in Cyprus depends upon the tax residency of the recipient and the location of the immovable property:
Tax residents of Cyprus
• Income Tax
• Special Defense Contribution (“SDC”) *
• General Healthcare System (“GHS”)
* Non domiciled tax residents are exempt from SDC on rental income
Non-tax residents of Cyprus
In the case of non-tax residents of Cyprus, only rental income from immovable property situated in Cyprus is subject to Cyprus Income Tax.
However, such income is exempt from SDC and GHS.