Cyprus Tax Guide
Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.
Best for
- Special regime available
Non-Dom Regime — 17-year exemption from Special Defence Contribution (SDC) on foreign dividends and interest for qual…
Personal Income Tax
Tax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
20% on Cyprus real estate; gains on securities exempt
Wealth & Inheritance
Special Regimes
Practical Notes
2026 reform reduced SDC on dividends from 17% to 5% (for profits earned from 1 Jan 2026), abolished Deemed Dividend Distribution on 2026+ profits, and extended tax loss carry-forward from 5 to 7 years. Non-dom regime remains the headline draw. English widely spoken; EU member.
Business & Corporate Tax
Corporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- IP Box regime
- Notional Interest Deduction
- Tonnage tax (shipping)
OECD Pillar Two (15% global minimum tax)
Implemented with delay; retroactive application to FYs starting on or after 31 Dec 2023. Separately, standard CIT raised from 12.5% to 15% from 1 Jan 2026 under broader 2026 reform.
See full implementation trackerTax Treaty Network
US-Cyprus treaty in force. No US totalization. Cyprus non-dom regime coordinates with treaty residency — useful for US-citizen non-doms.
See full treaty matrixData Sources
Last verified: June 2026. Always check official sources before making a decision.
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 from SDC for 17 years from first year of residency
What are the residency requirements for Cyprus?
Tax residency in Cyprus generally requires 183 days of physical presence. 183 days required; 60-day rule available for individuals meeting alternative tests. 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 15%. 15% from 1 Jan 2026 (up from 12.5% — 2026 tax reform, aligned with OECD global minimum). Tax losses now carry forward 7 years.
US citizen moving to Cyprus? Read this first.
Cyprus's top personal rate of 35% means the Foreign Tax Credit (FTC) usually wins over FEIE for US citizens.
- •FTC (Form 1116) credits Cyprus tax against US tax dollar-for-dollar. Because Cyprus tax exceeds US tax on the same income, you typically owe zero US tax and accumulate carryforward credits (10-year carry).
- •Self-employment tax is owed in full to the US — no totalization agreement with Cyprus.
- •For earned income near the FEIE cap (~$130k), FEIE is sometimes simpler administratively. Above the cap, FTC strategy almost always wins given Cyprus's rates.
- •Cyprus residency days threshold: 183. Treaty tie-breaker rules (where applicable) help with double-tax avoidance.
Need someone to actually plan Cyprus for you?
TaxAtlas covers the rates and rules. For the personal side — exit planning, residency strategy, business structure, or filings — request a response and we'll point you to relevant research or a specialist who handles Cyprus cases.
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