Taxes in Cyprus
Cyprus offers one of Europe's most attractive tax environments, particularly for expats and those with investment income. The non-domicile regime provides significant exemptions for up to 17 years.
Non-Domicile (Non-Dom) Status
If you weren't born in Cyprus (no Cyprus domicile of origin) and become a tax resident, you automatically receive non-dom status for 17 years.
Non-dom exemptions:
- Dividends: 0% (normally 17% SDC for doms)
- Interest income: 0% (normally 30% SDC)
- Rental income from abroad: 0% (normally 3% SDC on 75% of gross)
Tax Residency Options
183-Day Rule:
Spend 183+ days in Cyprus during a calendar year = tax resident
60-Day Rule:
Become tax resident with just 60 days if you:
- Don't spend 183+ days in any other single country
- Aren't tax resident elsewhere
- Maintain permanent residence in Cyprus (owned/rented)
- Conduct business or are employed in Cyprus
2026 Update: 60-day rule being extended to include those whose center of business interests is in Cyprus.
Personal Income Tax
| Annual Income (€) | Rate |
|---|---|
| 0 - 19,500 | 0% |
| 19,501 - 28,000 | 20% |
| 28,001 - 36,300 | 25% |
| 36,301 - 60,000 | 30% |
| 60,001+ | 35% |
Employment Income Exemptions
50% Exemption (New High Earners):
If you earn €55,000+ annually and:
- Take up first employment in Cyprus
- Were resident outside Cyprus for 15+ consecutive years prior
You can exempt 50% of employment income for 17 years.
20% Exemption (Lower Earners):
If you were resident outside Cyprus for 3+ years prior:
- Exempt 20% or €8,550 (whichever is lower) for 7 years
Other Key Taxes
| Tax | Rate |
|---|---|
| Corporate tax | 12.5% |
| VAT (standard) | 19% |
| Capital gains (property) | 20% (with exemptions) |
| Inheritance tax | 0% |
| Wealth tax | 0% |
| Foreign pension income | 0% (or 5% flat above €3,420) |
Social Insurance
Employees and self-employed pay social insurance contributions:
- Employees: 8.8% of earnings
- Employers: 12.6%
- Self-employed: 16.6%
For Digital Nomads
Digital Nomad Visa holders:
- Not automatically tax resident
- Determine residency based on days present
- If tax resident and non-dom: major benefits on investment income
- Employment income from abroad: taxable if tax resident
Filing Requirements
- Tax year: Calendar year (January-December)
- Filing deadline: July 31 following tax year (paper) or online deadline varies
- Most employees: Taxes withheld by employer
- Self-employed: Advance payments may be required
Pro Tips
- •Non-dom status is automatic if you weren't born in Cyprus - claim it
- •The 60-day rule allows tax residency with minimal presence - powerful for some
- •Structure affairs to maximize non-dom benefits before becoming domiciled (17 years)
- •Pension income can be taxed at flat 5% - compare to your home country rate
- •Get professional tax advice - the savings can be substantial
Have questions about taxes in Cyprus?