Special contribution for the defence

In accordance with the Special Contribution for the Defence of the Republic Law N.117(I) of 2002, Banking Organizations are obliged to deduct special contribution for the defence at the rate of 10% from interest paid or credited to accounts maintained by Cyprus residents.

Persons who are considered «non Cyprus residents» must complete, sign and return by 31 December of each year the attached «Questionnaire for Ascertaining whether the Conditions relating to the term NON CYPRUS RESIDENT are met for the Year ...", in order to ensure their tax status, at the branch of Bank Of Cyprus Public Company Ltd, where their accounts are held.

If the said questionnaire isn't received by the Bank in due time, the Bank according to the regulations of the Inland Revenue Department is obliged to deduct the 10% on the interest payable with respect to the following year and payment will also be demanded for the current year together with interest.

For your information please find here below who are considered to be Cyprus Residents regarding the above-mentioned law:

  • Individuals who reside in Cyprus for one or more periods which exceed in total 183 days during a tax year and
  • Legal persons whose management and control is exercised in Cyprus.
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