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 route to Cyprus tax residency: spend more than 183 days in Cyprus in a calendar year and you are automatically considered a Cyprus tax resident. This applies to both EU and non-EU nationals. Cyprus tax residents benefit from low progressive income tax rates, zero tax on dividends and interest income under non-dom status, and no inheritance tax.
The 60-Day Rule
Introduced in 2017, this alternative route allows you to become a Cyprus tax resident by spending just 60 days in the country per year — provided you: do not spend more than 183 days in any single other country, are not a tax resident anywhere else, maintain a permanent home in Cyprus (owned or rented), and have a business presence, employment, or directorship in Cyprus.
Non-Dom Status
Non-domicile (Non-Dom) status is available to individuals not domiciled in Cyprus under the Wills and Succession Law. Non-Doms pay zero Special Defence Contribution on dividend income (normally 17%) and zero tax on interest income. This status lasts for 17 years from the date you become a Cyprus tax resident — making it one of the most effective tax structures available to international residents in Europe.
Income Tax Rates
Cyprus uses a progressive income tax system. The first €19,500 of annual income is completely tax-free. Income between €19,501 and €28,000 is taxed at 20%; from €28,001 to €36,300 at 25%; from €36,301 to €60,000 at 30%; and above €60,000 at 35%. For non-doms, dividend and investment income can be structured to attract zero or minimal additional tax — making the effective rate significantly lower than the headline figures suggest.
Property-Related Taxes
There is no annual property tax in Cyprus — it was abolished in 2017. Property purchases are subject to Transfer Fees of 3–8% of the assessed value (paid at the Land Registry), or VAT at 19% for new builds (reduced to 5% for a primary residence). Stamp Duty applies at 0.15–0.20% of the contract value. Rental income is taxable, but allowable expenses — maintenance, management fees, insurance — significantly reduce the taxable base.
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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