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%Progressive, with the top rate starting at EUR 60k. The first EUR 19,500 is tax-free.
- 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
A special regime for new arrivals
Non-domiciled status brings 17 years' exemption from Special Defence Contribution on dividends and interest, extendable from 2026 by two further 5-year periods at EUR 250,000 each. The IP Box regime offers an 80% exemption, with an effective rate of ~3% from 2026. Crypto gains and approved share-scheme remuneration are taxed at a flat 8%.
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.