Preparation for the tax season requires attention to detail. For tax residents of Cyprus, filing a personal tax return (form TD1) is a mandatory process. Below are the key theoretical and technical nuances to consider when declaring income.
Nuance 1: Threshold for Mandatory Filing
The main criterion is the amount of your gross annual income.
For 2025: if your income exceeds €19,500 per year, filing an electronic declaration is strictly mandatory.
Important: total income is considered before any deductions or tax reliefs. Even if the final tax payable is zero, missing the filing deadline will result in an administrative fine of up to €300.
Nuance 2: Obtaining a Tax Identification Number and Access to the TAXISnet System
Step 1. Obtaining an Individual Tax Identification Number (TIC). To report to the tax authorities, you must be officially registered for tax purposes. The initial application for registration as an individual is submitted online through the Tax For All (TFA) system.
Step 2. Accessing your personal account. Once your application is approved and a TIC is assigned, the Tax Department automatically creates an account in the TAXISnet system for filing declarations within three working days and sends a temporary username and password to your email address.
Important: after logging into the system for the first time, you must change your username and password to something more convenient and secure.
Nuance 3: Updating Personal Information
The system does not allow you to change key personal data (such as your email address or type of activity) directly while completing the declaration.
If your data has changed, you must submit an update form (TD2003) in advance. This can now be done online by sending the completed form through your TFA personal account.
This is critical: if the tax authorities send an official request to an old address and you do not receive it, this does not relieve you of liability for a delayed response.
Nuance 4: Keeping Supporting Documents
When filing electronically, the system does not require you to upload scans of certificates or statements. Declarations are based on the taxpayer’s calculations.
However, a tax inspector has the right to request documentary proof of any figures provided at any time.
According to the rules, you must keep all source documents (bank statements, tax withholding certificates, dividend statements, and other supporting documents) for at least 6 years from the end of the relevant tax year.
What to Do Right Now
Ensure that you are registered with the tax authorities and that your access to TAXISnet is active. If you have recently received a TIC, check your email for a letter from the Cyprus Tax Department.
If your details have changed since your last filing, update them in advance. Closer to the filing deadline, tax systems traditionally experience peak loads, which can lead to technical failures.
Request all necessary income and tax withholding certificates for the reporting period from employers, banks, and brokers, and ensure you have other supporting documents to avoid a last-minute rush before the deadline.
Additional Information
From 2026, the tax-exempt threshold will increase to €22,000. Furthermore, filing a declaration will become mandatory for all tax residents over 25 years of age, regardless of the amount of income received.
The deadline for filing the declaration and paying the tax for the 2025 tax year is 31 July 2026. The Cypriot tax authorities may change this date, so it is recommended to follow official news.
