v256.0 · tax residency · CY · verified 2026-04
Cyprus tax residency
Rules that determine when you become tax-resident in Cyprus, the headline rates, and any HNW or expat special regime that softens the standard system.
Threshold
183 days/year
Taxation basis
non-dom (60-day rule available)
Top marginal rate
35% above €60K
Capital gains
0% on financial assets; 20% on Cyprus real estate gains only
Special regime: Non-Dom + 60-day Rule
Non-dom status (17 years from arrival) exempts SDC (Special Defense Contribution) on dividends, interest, rental income → effectively 0% on most passive foreign income. 60-day rule (alternative to 183-day) — combine: <183 days anywhere, ≥60 days in Cyprus, Cyprus business/employment + permanent home; common for highly mobile HNW. New 50% exemption for inbound employees earning >€55K, 17-year duration.
Rate landscape
| Dividends tax | 0% for non-doms (17% Special Defense Contribution waived); 17% for domiciled |
| Exit tax | No personal exit tax |
| Tax treaty network | 67 jurisdictions |
| CRS (automatic info exchange) | Active since 2017 |
Recent regime changes (2023-2026)
New 50% inbound exemption regime started Jan 2022 (€55K threshold, 17-year duration). Cyprus IP-box regime continues at 2.5% effective rate. 2024: enhanced economic-substance requirements for companies; non-dom regime remains stable.
Strengths
- 0% on dividends/interest for non-doms — among EU's most generous
- 60-day rule unique within EU — solves "where am I tax-resident" for digital nomads
- EU passport path after 7 years residency
- IP-box 2.5% effective rate world-class for SaaS/licensing
- English-language legal system (post-British)
Top cities for tax-residency seekers
Limassol Nicosia Larnaca Paphos
Source: official Cyprus tax authority page · Last verified 2026-04
See also: full Cyprus country profile · full tax-residency atlas