Understanding taxes in Cyprus
Learn how Cyprus taxes individuals, employees, remote workers, business owners and retirees, and understand the key concepts before relocating.
Tax overview
The six things that actually matter
A visual overview of Cyprus's main tax topics for anyone planning a move.
Income Tax
Progressive bands: 0% up to €22,000, then 20% → 35% at the top.
Tax Residency
Two ways in, the 183-day rule or the special 60-day rule.
Non-Dom Status
Up to 17 years of exemption on dividends, interest and most passive income.
Capital Gains Tax
Generally 20%, only on gains from Cyprus-situated real estate.
Corporate Tax
Headline rate of 12.5%, one of the lowest in the EU.
Dividend & Interest
0% for Non-Doms. Otherwise 17% (dividends) or 30% (interest) SDC.
Personalise the guide
Who are you?
Pick the profile closest to your situation and see the tax considerations that most likely apply to you.
Remote worker
Key tax considerations
- 60-day rule can make Cyprus your tax home even with limited time on-island.
- Foreign employer income becomes taxable in Cyprus once you are resident.
- Non-Dom exempts most passive income (dividends, interest).
- Double-tax treaties usually prevent paying twice on the same income.
First thing to check: Confirm your employer's payroll can support a Cyprus contract or use a local umbrella.
Placeholder guidance for planning purposes, confirm details with a licensed Cyprus tax advisor.
Tax residency
Two ways to become Cyprus tax resident
Cyprus is one of the few EU countries with a fast-track, 60-day path to tax residency. Here is how each rule works.
183-Day Rule
The standard route
- Spend more than 183 days in Cyprus in a calendar year
- No other conditions
- Automatic tax residency
60-Day Rule
For globally mobile individuals
- At least 60 days in Cyprus in a calendar year
- Not tax resident in any other country
- Not spending 183+ days in any other country
- Business ties: employment, directorship or self-employment in Cyprus
- Maintain a permanent home in Cyprus
Tax resident
Taxed on worldwide income
- Global income in scope, subject to treaty relief
- Eligible for Non-Dom benefits
- Access to Cyprus's 65+ double-tax treaties
Non-resident
Taxed only on Cyprus-source income
- Cyprus employment or Cyprus rentals only
- Cannot claim Non-Dom benefits
- Home country's rules still apply
Cyprus Non-Dom
A tax regime for people who become Cyprus tax resident but were not born or domiciled here, designed to keep passive income tax-efficient for up to 17 years.
0%
on dividends
0%
on interest
17 yrs
maximum duration
60 days
minimum presence
What it is
A Non-Domiciled status that removes Special Defence Contribution on most passive income, layered on top of standard Cyprus tax residency.
Who benefits
Founders, remote workers, retirees and investors who receive dividends, interest or rental income from abroad.
Typical advantages
0% on dividends and interest, no wealth tax, no inheritance tax, plus Cyprus's 65+ double-tax treaty network.
Who should consider it
Anyone becoming Cyprus tax resident who has passive income and has not been Cyprus-domiciled in 17 of the last 20 years.
Common misconceptions
What people usually get wrong
Buying property changes your tax residency
It does not. Tax residency depends on time spent and ties, not property ownership.
Residency and tax residency are the same
They are separate. Immigration status lets you live here; tax residency decides where you pay tax.
A few weeks makes you Cyprus tax resident
Only if all the 60-day rule conditions are met. Otherwise you need 183 days on-island.
Everyone qualifies for Non-Dom
You must be Cyprus tax resident and not have been Cyprus-domiciled in 17 of the last 20 years.
Frequently asked
Cyprus tax questions
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