Europe
Cyprus: tax at a glance
A low-tax EU residence system. The 2026 reform raised corporate tax to 15%. The non-dom regime, combined with the 60-day residency rule, keeps foreign dividends, interest and rents effectively untaxed for 17 years.
Ways to relocate to Cyprus
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 35%
- Corporate income
- 15%
- Capital gains
- 20% on gains from Cyprus real estate only. Gains on securities are exempt.
- VAT
- 19%
- Dividends (WHT)
- 0%, rising to 5% for payments to associated companies in jurisdictions taxed below 7.5%, starting in 2026.
- Interest (WHT)
- 0%
- Royalties (WHT)
- 10% on rights used within Cyprus, 0% otherwise.
- Social security (employee)
- 8.8%, plus a 2.65% GHS health levy.
- Social security (employer)
- 8.8%, plus a 2.9% GHS health levy.
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- None at the national level. The immovable property tax was abolished in 2017, leaving only municipal rates.
- Other
- A Special Defence Contribution applies to passive income, cut to 5% in 2026. Non-doms are exempt.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
- Special regime
- The non-dom regime, which gives a 17-year exemption from the Special Defence Contribution on dividends, interest and rents, combined with the 60-day tax-residency rule.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Frequently asked
What is the income tax rate in Cyprus?
The top marginal personal income tax rate in Cyprus is 35%. Progressive, with the top rate starting at EUR 60k. The first EUR 19,500 is tax-free.
What is the corporate tax rate in Cyprus?
The headline corporate income tax rate is 15%.
Does Cyprus tax capital gains?
Capital gains for individuals: 20% on gains from Cyprus real estate only. Gains on securities are exempt..