Non Cyprus tax resident individuals/companies are taxed only on their Cyprus-source income including the following:
- Employment income or profits (including allowances) from any office or employment in Cyprus. In practice income subject to tax is calculated subject to the days spend in Cyprus.
- Directors fees for attending board meetings in Cyprus;
- Income from a permanent establishment in Cyprus,
- Rental of immovable property located in Cyprus; and
- Pensions from employment exercised in Cyprus.
Taxation in Cyprus may be reduced under a double tax treaty.
Dividends and interest received by non-residents are exempt from income tax.