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 free of the Special Defence Contribution on dividends and interest.
Capital Gains Tax
Generally 20%, only on gains from Cyprus-situated real estate.
Corporate Tax
Headline rate of 15% from 1 January 2026, up from 12.5%.
Dividend & Interest
0% for Non-Doms. Otherwise 5% SDC on dividends from 2026 profits and 17% on interest.
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
Cyprus tax guides
Explore Cyprus tax in detail
Each guide covers one part of the picture. They are written to be read in any order.
Who becomes resident
Cyprus Tax Residency
How you become (and stop being) a Cyprus tax resident, and what changes.
Read guideDomicile explained
Cyprus Non-Dom Status
What non-domiciled status covers, who qualifies and for how long.
Read guideRates and bands
Cyprus Income Tax
Bands, exemptions, contributions and worked salary examples.
Read guideDay-count rules
60-Day vs 183-Day Rule
The two residency tests side by side, with day-counting rules.
Read guideThe honest list
Tax Benefits of Living in Cyprus
Which advantages are real, which are oversold, and the trade-offs.
Read guidePlanning your move?
Calculate your monthly living costs and explore the best city before making your relocation decision.
Sources and last review
Checked against official Cyprus sources
Figures on this page reflect the rules we understand to be in force for the 2026 tax year. Tax law changes, and transitional rules often apply, so always confirm the current position before acting.
- Cyprus Tax Department (gov.cy)
- Civil Registry & Migration Department (gov.cy)
- Social Insurance Services (gov.cy)
- Health Insurance Organisation (GESY)
General guidance only. Navigate Cyprus is not a tax, legal or financial adviser. Nothing on this page is personalised tax, legal or financial advice, and your own position depends on your income, family situation, other countries involved and any applicable double tax treaty. Speak to a licensed Cyprus tax adviser (and an adviser in your current country) before making decisions.