Freelancer in Cyprus Tax Guide

Freelancer in Cyprus offers a great deal of freedom in a welcoming place, but before going into business, freelancers need to clear paperwork.
Article Published: 04 Dec, 2020, Updated: 22 Nov, 2022 under Self-Employed Set-Up Service

A freelance business is typically owned and operated by one individual. Freelance business offers a great deal of freedom, as the business owner is not accountable to partners and does not need to share any profits.

Freelancer Cyprus business V Limited company

A freelance business can do everything a limited company can do; employ staff; sign contract; enter into loans with banks, register for VAT, register as trading name and so on. A limited company, however, can confer some prestige and reliability but the main difference is that a limited company provides “limited liability” to the owners of the company.  It can also be tax advantageous to have a Ltd company - if the income and profit are substantial enough.

Operating as a freelancer is less expensive as there are zero setup / incorporation costs and no requirement for annual audited accounts if the revenue is below €70.000. Moreover your first €19,500 of income is tax free.  Tax rates then start at 20% and rise progressively to 35% for income over €60,000. The profits of limited companies are taxed at a flat rate of 12.5%.

Benefits for non-Cypriot freelancers

One of the greatest advantages that individuals from EU and EFTA (European Free Trade Association) countries have when setting up a freelance business in Cyprus is that they do not need a work or residence permit in Cyprus. Non-EU/EFTA citizens, however, are required to apply for work and residence permits before coming to Cyprus.

Individuals from both EU and Non-EU countries may claim their non-domiciled status and be exempted from defence tax for 17 years.

The defence tax applies to worldwide investment income of individuals who are resident and domiciled in Cyprus, at the following rates.

  • Interest – 30% (reduced to 3% if your income is less than €12,000)
  • Dividends 17%
  • Rental income – 3% (on 75% of gross income) 

Freelancer Cyprus - Conclusion

Freelance business in Cyprus may be ideal in some cases but analysis of the circumstances of each case are required before an informed decision can be made. Therefore, it is highly recommended that the advice of a local specialist is sought.

You may be interested in the following service...

Client testimonials

"My lawyer was a Godsend. Trustworthy, diligent, knowledgeable, punctual (when answering emails), persistent, and sincere are adjectives I would use. I wholeheartedly recommend getting in touch if you need a legal representative."

Gregory Elliott (Jan, 31 2022)
Client testimonials

"Our lawyer was very responsive and responsible. My emails and what’s app messages were never ignored. Sometimes the replies arrived in minutes. The lawyer was very nice, informative and advised us the best. I highly recommend Advocate Abroad for any legal issues."

Zahid M (Jan, 31 2022)
Client testimonials

"My lawyer was quickly available, gave very helpful and professional advice, and charged very fairly. I still intend to get in touch again should the occasion arise."

Jakob Saalfrank (Jan, 20 2022)
Client testimonials

"Very professional and friendly service and unseen dedication. Recommendation from the bottom of my heart!"

Lidija K (Jan, 18 2022)
Client testimonials

"What can I say? Our lawyer has been absolutely fantastic! Friendly, helpful, knowledgeable and professional and I would highly recommend to anyone."

Sally Giblenn (Jan, 18 2022)
Client testimonials

"My experience with Advocate Abroad has been great! Absolutely fantastic service that I will be recommending to all my friends!"

Katie Langrick (Dec, 22 2021)
Client testimonials

"My lawyer was fantastic. A very difficult, painful and chaotic process very made smooth and quick. I would highly recommend. Thank you!"

Josh Pears (Dec, 10 2021)
Client testimonials

"My lawyer was most helpful and polite and did a first class job. I would highly recommend this firm for any legal issues in Spain. Regards Michael."

Michael Whitty (Nov, 29 2021)
Client testimonials

"We were provided with excellent professional service at all times. We are delighted with the service provided. Many thanks!"

Trevor Bridges (Nov, 08 2021)
Client testimonials

"My lawyer from Advocate Abroad was completely professional from the first contact all the way through to the end of the service."

Stuart Denison, Istanbul (Oct, 19 2021)
Client testimonials

"I had tried before and failed with a different lawyer. I’m so glad I reached out to Advocate Abroad, and they recommended the right lawyer. I recommend 100%!"

Janekate (Sep, 14 2021)
Client testimonials

"My lawyer - through extraordinary efforts - ensured everything was done for me and on several occasions during this process went the extra mile. I also received 1st class aftercare also. Exceptional value for money!"

Neil Shaw (Apr, 28 2021)
Client testimonials

"Our lawyer was very thorough and explained everything well. Probably the quickest responses I have ever had from a lawyer! Highly recommended."

Paul Dunne (Mar, 30 2021)
Client testimonials

"My attorney was fantastic - a difficult job was made to be straightforward. I would recommend this service to anyone!"

Robert Anslow (Sep, 21 2020)
Client testimonials

"Very attentive, fast response, professional and good results!"

Stelios Nousis (Jul, 31 2020)
Client testimonials

"My lawyer organised everything: making the appointments and accompanying me to the appropriate offices.....I was very satisfied, and so I sought advice on other legal and business matters."

Ed (Jul, 29 2020)
Client testimonials

"Our lawyer from Advocate Abroad delivered a great service - very professional! I would definitely use the service again and would recommend to anyone looking for a good lawyer."

Andrew Bale (Jul, 17 2020)
Client testimonials

"Our lawyer was efficient, clear, timely and exceptionally helpful. We would recommend this respectable solicitor who has excellent English. Trustworthiness is so important, thank you!"

Andrew Hales (Oct, 23 2019)
Client testimonials

"Very experienced and professional. Could not do enough to help us with the matter in hand. Would recommend this lawyer to everyone. Great service thanks!"

Alan Ragsdale (Sep, 21 2019)
Client testimonials

"My lawyer was very helpful and went above and beyond to try to help me in my situation as I needed it to happen as fast as possible. Even whilst my lawyer was on holiday, we kept in touch and made things happen. Would definitely recommend!"

Tina Shiels (Sep, 06 2019)

Service Details

Self-Employed Set-Up Service

This service is available across Cyprus

Who Is This Service For?

This is the most inexpensive way to set up a business.

You will be self-employed and work within a simple structure implying little bureaucracy in which, basically, you are paid with the profits of your company.

You will not be considered as an employee, and will have less social benefits than you would as a regular employee. You will be liable for any and all losses incurred by the business.

What Does This Service Consist Of?

  • Obtain residence permits or work permits.
  • Provide information about healthcare.
  • Registration with the Tax Authority and the Social Security System.
  • Help you to choose the right business name.
  • Choose your business activity. We can provide you with a list of recommended activities (list of trade licenses that are approved by administrative bodies).
  • Business address (whether it will be only for correspondence or you will really make your business there).
    Recommendations regarding the most appropriate fiscal arrangements to ensure taxation levels are optimised
  • Resolution of tax enquiries related to your professional activity.
  • Completion and presentation of all required tax returns.
  • Maintenance of all legally required records (income, expenses, invoicing, assets).

Free Support Services Included

When combined with the free and innovative Advocate Abroad support services you can be sure that you are obtaining completely transparent legal services from registered and regulated English-speaking lawyers abroad.These support services include:

  • Verification of the regulatory status of your professional.
  • Fees as recommended by the Local Professional Body
  • Fees specified in advance and legally guaranteed.
  • Service levels agreed in advance and guaranteed.
  • All professionals must hold professional indemnity insurance.
  • Professionals' proficiency in English monitored.
  • Continuous quality controls and reviews.

Why choose Advocate Abroad?

Established more than
10 years ago
Present in 20
European Countries
Over 30,000 client enquiries
successfully managed

Our Accountants

Send Your Enquiry