Tax & Residency
Tax Residency in Cyprus
Cyprus offers some of Europe's most attractive tax conditions for individuals and businesses. This guide covers the key rules — but always consult a qualified tax advisor for your specific situation.
The 183-Day Rule
The standard rule: spend more than 183 days in Cyprus in a tax year and you become a Cyprus tax resident. This applies to most EU and non-EU individuals. Cyprus tax residents benefit from low income tax rates, a 0% tax on dividends and interest for non-doms, and no inheritance tax.
The 60-Day Rule
Since 2017, Cyprus offers an alternative route: you can become a tax resident by spending just 60 days in Cyprus per year, provided you: (1) spend no more than 183 days in any other single country, (2) are not a tax resident in any other country, (3) maintain a permanent residence in Cyprus (owned or rented), and (4) have a business presence, employment, or directorship in Cyprus.
Non-Dom Status
Non-domicile (Non-Dom) status is available to individuals who were not domiciled in Cyprus under the Wills and Succession Law. Non-Doms pay zero tax on dividends (normally 17% Special Defence Contribution) and zero tax on interest income. This status is valid for 17 years from the date of becoming a Cyprus tax resident.
Income Tax Rates
Cyprus uses a progressive income tax system. The first €19,500 is tax-free. Income from €19,501–€28,000 is taxed at 20%. From €28,001–€36,300 at 25%. From €36,301–€60,000 at 30%. Above €60,000 at 35%. Crucially, dividends and investment income can be structured to attract zero or very low tax for non-doms.
Property-Related Taxes
There is no annual property tax in Cyprus (it was abolished in 2017). Property purchases are subject to Transfer Fees (3–8% of value) or VAT (19% or reduced 5% for first home), plus Stamp Duty. Rental income is subject to income tax, but allowable expenses reduce the taxable base significantly.
Disclaimer: This page contains general information only and does not constitute tax advice. Cyprus tax law is complex and individual circumstances vary significantly. Always consult a qualified Cyprus-licensed tax advisor or accountant before making decisions.
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