Top 5 Financial Moves in Cyprus before 2025 Ends
Before the end of 2025, you can improve your financial health by creating a budget, paying down debt, building an emergency fund, reviewing and adjusting your investment strategy, and optimizing your accounts by switching to high-yield options or taking advantage of tax-advantaged accounts. These steps can help you gain better control over your finances, reduce stress, and build wealth for the future.
GESY contributions deductions
Maximize Your GESY Contributions Benefits. Understand your General Healthcare System (GESY) contributions. These are mandatory. But you can claim deductions on your income tax return. Ensure you have all your official receipts. This lowers your taxable income.
Review Your Personal Income Tax Status
Cyprus has a favourable tax regime. Your income tax return covers the previous year. Plan now for any 2024 liabilities. Consider prepaying expenses deductible against 2024 income. This includes things like life insurance premiums.
Before the end of 2025: Optimize Your Investment Property Strategy
Rental income is taxable in Cyprus. You can deduct many expenses. Gather all your receipts for maintenance, management fees, and mortgage interest. This significantly reduces your taxable rental profit.
Utilize Your Capital Gains Tax Allowance
You pay Capital Gains Tax only on property sales. The first €17,086 of profit is exempt each year. Plan the sale of assets to use this allowance. This is a powerful way to shelter investment gains.
Structure Your Dividend & Interest Income
Dividends from Cypriot companies are often tax-free. Interest income has a €17,086 annual exemption. Review your investment income sources. Structure your portfolio to maximize these valuable allowances.
