Tax on interest income in Cyprus in 2024. Special Contribution for Defence

Bank deposits’ interest in Cyprus is subject to a 30% yield tax called special contribution for defence.

The yield of bank deposits is either negative or very close to zero due to the expansionary monetary policy of the European Central Bank (ECB).

Inflation skyrocketing in 2022 will force the ECB to raise the basic interest rate to over 1%, but this is not expected to also significantly increase the savings interest rates of bank notes.

Check out our tax calculator tool to estimate your own contributions, and find out how you can save on your income tax.

Pitsas Insurances,

Limassol, Cyprus