Taxation A 10% Tax is levied on interest earned on deposits. In accordance with the special contribution 2002 law No. 117 (I) for the defense of the Republic, all    banking institutions operating in Cyprus are compelled to deduct a special 10% contribution to the    defense on interest earned or credited to accounts maintained by Cypriot residents. Non-Cypriot residents, who are exempt from the tax contribution, must sign a special declaration    (Form IR 18A). Residents of Cyprus are considered: • Individuals, who reside in Cyprus for a duration of one or more periods, which exceed a total    of 183 days during a tax year. • Legal persons whose control and management are practiced in Cyprus.