Cypr zmienił zasady raportowania podatkowego: Kto musi złożyć zeznanie podatkowe nawet bez dochodu

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Starting in 2026, Cyprus has expanded the requirement to file income tax returns. Under the new rules, tax residents of the country who are between the ages of 25 and 70 as of December 31 of the reporting year must file a return. This requirement applies regardless of income level and even extends to those who earned nothing during the year.

The first tax return under the new rules will cover income for 2026 and will be filed in 2027. However, the reporting obligation does not mean that tax will be automatically assessed. Let’s take a look at who is affected by these changes, how to determine tax residency, and what you need to prepare for the first filing season.

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What has changed in Cyprus’s tax reporting rules?

The Cypriot Parliament approved a tax reform package on December 22, 2025. The documents were published in the Official Gazette on December 31, and the main changes took effect on January 1, 2026. The reform covered taxation of individuals and companies, income reporting rules, tax rates, and penalties for violations.

The key change for individuals is that the obligation to file a tax return no longer depends solely on the presence of taxable income. Tax residents of Cyprus aged 25 to 70 as of December 31 of the reporting year must file a return even if they have zero income. At the same time, individuals younger than 25 or older than 70 are exempt from filing only if they have no gross income.

The new rules apply to income received on or after January 1, 2026. Therefore, the expanded group of taxpayers will file returns for the first time in 2027.

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Who is required to file a tax return?

The new requirements do not automatically apply to all foreigners living, working, or holding a residence permit in Cyprus. Tax status, age, and the presence of income are decisive factors.

The following individuals must file a tax return:

1. Cyprus tax residents aged 25 to 70 as of December 31 of the reporting year, even if they did not receive any income

2. Tax residents under 25 or over 70 years of age, if they had gross income

3. Non-tax residents who received income subject to taxation in Cyprus

Thus, the age exemption is not unconditional. For example, a 23-year-old tax resident with no income may not be required to file a tax return. If this person received a salary, business income, or rental income, the obligation to file arises regardless of age.

Possession of a residence permit, a digital nomad visa, or real estate does not in itself determine the obligation to file a tax return. First, it must be determined whether the person has become a tax resident of Cyprus or has received income from sources within the country. The government may also introduce specific exceptions through its decisions, so the rules must be checked for each tax year.

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How is Cyprus tax residency determined?

Tax residency is determined by the number of days spent in the country and the individual’s ties to Cyprus. Citizenship, visa type, or a residence permit do not automatically grant this status.

The 183-Day Rule

An individual is considered a tax resident if they stay in Cyprus for more than 183 days during a calendar year. Periods of stay are aggregated, so it is not necessary to reside in the country continuously.

In this case, Cyprus gains the right to tax the resident’s worldwide income, not just income earned on the island. Double taxation treaties may apply in such cases.

The 60-Day Rule

It is also possible to obtain tax resident status with a shorter stay. To do so, a person must simultaneously:

- Spend at least 60 days in Cyprus during the year

- Not stay more than 183 days in any other single country

- Work, conduct business, or hold a directorship in a company in Cyprus

- Have a permanent residence on the island, either owned or rented

As of January 1, 2026, the condition in the 60-day rule that barred a person from being a tax resident of another country was removed. If two countries simultaneously recognize a person as their resident, status is determined in accordance with the double taxation treaty. Typically, the permanent residence, the center of vital interests, and the place of habitual residence are taken into account.

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Do you have to pay tax if you have no income?

Filing a tax return and paying tax are separate obligations. If a tax resident between the ages of 25 and 70 has not received any income, they must still file a tax return. However, if taxable income is zero, no personal income tax is assessed.

Starting in 2026, the tax-free threshold in Cyprus was raised from €19,500 to €22,000. The following rates apply to taxable income:

- Up to €22,000 – 0%

- From €22,001 to €32,000 – 20%

- From €32,001 to €42,000 – 25%

- From €42,001 to €72,000 – 30%

- Over €72,000 – 35%

The rates are progressive. For example, for taxable income of €30,000, the tax is not calculated on the entire amount. The first €22,000 is taxed at a zero rate, and the remaining €8,000 is taxed at a rate of 20%. Before any deductions are applied, the tax amount will be €1,600.

At the same time, a zero personal income tax rate does not always mean there are no other payments. Depending on the type of income and the individual’s status, social security contributions, health care contributions, or a special defense levy may apply.

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What income must be reported on the tax return?

Tax residents of Cyprus report income earned both domestically and abroad. This refers to gross amounts before the application of tax credits, deductions, and exemptions. Non-residents declare only income that is taxable in Cyprus.

The tax return may include:

- Salaries, bonuses, and payments from an employer

- Income from self-employment, freelance work, or business activities

- Pensions, including those received from abroad

- Income from real estate rentals

- Dividends and interest

- Royalties from copyrights and patents

- Profits from cryptocurrency transactions

- Payments under contracts, court judgments, or wills

Certain types of income may be tax-exempt or subject to a special tax rate. For example, starting in 2026, individuals’ profits from cryptocurrency transactions will be taxed at a flat rate of 8%. Dividends and interest are not included in the regular income tax base, but under certain conditions, they are subject to a special defense surtax.

Foreign income cannot be ignored simply because the funds were deposited into an account in another country. If tax has already been paid on that income abroad, a resident may claim a tax credit in accordance with Cypriot law or an international agreement. To verify this, income statements, bank statements, and proof of tax paid are required.

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When and how should the 2026 tax return be filed?

The tax year in Cyprus coincides with the calendar year and runs from January 1 to December 31. Therefore, the tax return for 2026 income will be filed in 2027.

Filing Deadlines

For employees, retirees, and self-employed individuals who are not required to prepare audited financial statements, the standard deadline is July 31, 2027. The Government of Cyprus may extend or change this deadline by separate decision.

A different schedule applies to individuals who are required to prepare audited financial statements. The 2026 tax return must be filed by January 31, 2028. This obligation may arise, in particular, for income exceeding €120,000 from business activities, rent, dividends, interest, royalties, or transactions involving business goodwill.

How to File a Tax Return?

Tax returns are filed electronically. Before doing so, the taxpayer must register with the tax registry and obtain a Tax Identification Number (TIN). The registration application is submitted through the Tax For All portal. Individual tax returns are filed using Form TD1 via the electronic system designated by the Tax Department.

To complete the return, you may need:

- Passport information and TIN

- Pay stubs and tax withholding statements

- Bank statements

- Information on business and rental income

- Documents regarding dividends, interest, and pension payments

- Proof of income and taxes paid abroad

- Documents required to claim tax credits and deductions

Starting in 2026, supporting documents must be retained for at least six years. The retention period is calculated based on the prescribed deadline and the actual date the tax return is filed. If the return includes income from multiple countries, self-employment, or investments, it is advisable to organize the documents during the tax year itself.

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What are the consequences of failure to file or errors in the tax return?

Starting in 2026, the fine for late filing of a tax return by an individual is €150. It may be imposed even if the taxpayer did not receive any income and has no tax due. The absence of a tax liability does not exempt the taxpayer from the requirement to file a return.

If the return was filed on time but the tax was not paid, separate penalties apply:

- A surcharge of 5% of the unpaid amount

- An additional 5% if the delay exceeds two months

- Interest for each full month of delay at the current statutory rate

Errors in the tax return may result in additional tax assessments, interest, and additional penalties. The amount of liability depends on the amount involved, the type of violation, and whether it was intentional. If the taxpayer independently discovers an inaccuracy, it is advisable to file an amended return before a tax audit begins.

The tax department has the right to audit the return and request supporting documents for up to six years after it is filed. If fraud or intentional concealment of information is established, the audit period may be extended.

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What should foreigners do right now?

Do not wait until the tax return form is released to begin preparing your 2026 tax return. First and foremost, you need to determine your tax status and gather documents for the entire calendar year.

Practical steps:

- Count all days spent in Cyprus in 2026

- Verify compliance with the 183-day or 60-day rule

- Register with Tax For All and obtain a TIN

- Gather information about income earned in Cyprus and abroad

- Obtain certificates of taxes paid in other countries

- Check for available tax credits and deductions

- Keep contracts, invoices, bank statements, and payment documents

Special attention should be paid to income from which the employer does not withhold tax. This may include income from business, freelance work, rentals, or investments. For such taxpayers, a system of advance tax payments in two installments may apply—due by July 31 and December 31 of the current year.

If a person can be considered a resident of both Cyprus and another country at the same time, it is necessary to review the relevant double taxation treaty. This will help determine the country of primary residence and correctly account for tax already paid. Having income in multiple jurisdictions, running a business, or holding a significant investment portfolio is a good reason to consult a tax advisor before filing a tax return, rather than after receiving a request from the tax authority.

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