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Cyprus Tax Guide

Europe
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
80/100
Very Tax Friendly
Business Tax Score
85/100
Very Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required; 60-day rule for non-doms available

Income Tax Rates

Top Marginal Rate
35%
Structure
Progressive 0-35%

Foreign Income Treatment

System
Worldwide
Details
Non-dom regime exempts foreign dividends and interest for 17 years

Investment Income

Capital Gains
20%
Dividends
0-17%%
Interest
0-30%%

20% on real estate; exempt on securities


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax

Special Regimes

Non-Dom Regime
17-year exemption on foreign dividends and interest
60-Day Rule
Alternative residency test for qualifying individuals

Practical Notes

Non-dom regime very attractive. English widely spoken. EU member. Note: Corporate tax increasing to 15% from 2026.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
12.5%
Effective Rate Note
12.5% until end of 2025; increasing to 15% from January 2026
Free Zone / Incentives
No specific free zones but various incentives

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0%

VAT / GST

Rate
19%
Note
19% VAT

Compliance & Substance

Substance Requirements
Moderate - substance requirements apply
Compliance Friction
Moderate - EU member, well-regulated

Notable Regimes

  • IP Box regime
  • Notional Interest Deduction
  • Shipping regime

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Cyprus?

Cyprus has a top personal income tax rate of 35%. The tax structure is: Progressive 0-35%. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Cyprus?

Cyprus uses a worldwide system for foreign income. Non-dom regime exempts foreign dividends and interest for 17 years

What are the residency requirements for Cyprus?

Tax residency in Cyprus generally requires 183 days of physical presence. 183 days required; 60-day rule for non-doms available. Always verify current rules with official sources.

Is there a wealth tax in Cyprus?

No, Cyprus does not have a wealth tax. No wealth tax

What is the corporate tax rate in Cyprus?

The corporate tax rate in Cyprus is 12.5%. 12.5% until end of 2025; increasing to 15% from January 2026