Increase in tax-free income for individuals to €20,500 among Tax Reform proposals

13:41 - 26 February 2025

Economy Reporter

An increase in the tax-free income threshold by €1,000 to €20,500, the opening of tax brackets and the transfer of the highest tax rate of 35% to taxable income greater than €80,000, are included in the tax reform proposals for individuals, presented to the Presidential Palace.

The presentation carried out by Professor Elena Andreou, Director of the University of Cyprus' Economics Research Centre.

According to the proposed revised tax scales, the tax rate for taxable income up to €20,500 is zero, while for taxable income €20,501-€30,000 it is set at 20%.

For taxable income of €30,001-€40,000 it amounts to 25%, for income of €40,001-€80,000 it amounts to 30%, while for taxable income above €80,001 the tax rate is 35%.

The tax deductions applied with income criteria of total gross income of the household with two working spouses up to €80,000 are as follows:

€1,000 to each spouse/partner for each child under 19 (female)/21 (male) and €1,000 to each spouse/partner for each student up to 23 years old (female) and 24 years old (male), while for the installments of a serviced loan for the purchase of a first home or rent up to €1,500 to each spouse/partner.

(Source: InBusinessNews)

Increase in tax-free income for individuals to €20,500 among Tax Reform proposals

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