How does the Tax system work in Southern Cyprus?
If you are a pensioner from a country that has a tax treaty with Cyprus, you can avoid double taxation. The US, USA, Canada and many other countries have already concluded tax treaties with Cyprus. If in addition, the pensioner’s regular income is more than CYP 2000 s/he will not have to pay taxes except for a 5% tax on their pension income, which is extremely low.
