Jurisdiction briefing · CY

Cyprus

EU member with a 60-day residency rule, 17-year non-dom exemption on dividends/interest, and a low-friction setup.

60Days for residency

0%Tax on dividends (non-dom)

17 yrsNon-dom window

Last reviewed21 April 2026Orientation only · verify before acting

Tax snapshot

The position in figures.

Headline treatment for an individual tax resident. Source, asset and treaty rules can change the payable result.

Top marginal income tax35%—

Capital gains0% on shares20% on Cyprus real estate

Wealth taxNone—

Inheritance taxNoneAbolished 2000

Exit taxNone on individuals—

CFC rulesEU ATAD aligned—

Tax treaties~70—

Days for residency60Subject to ties test

Profile fit

Where the jurisdiction fits.

Best for

Founders wanting EU residence with minimal physical presence (60 days)
Investors with significant dividend or interest income (non-dom = 0% Special Defence Contribution for 17 years)
Anyone seeking 0% capital gains on share dispositions
Russian-speakers and Middle Eastern HNWIs comfortable with Cyprus’ business culture

Consider carefully

Buyers expecting to use the (closed) Cyprus Investment Programme for citizenship
Anyone with significant Cyprus real-estate gains — those are taxed
Operators dependent on banking simplicity — Cyprus banking has tightened materially since 2018

Routes and regimes

Programmes that matter.

60-Day Tax Residency Rule

Become Cypriot tax resident with only 60 days physical presence if (a) you do not spend 183+ days in any other country, (b) are not tax resident elsewhere, (c) maintain a permanent residence in Cyprus, and (d) carry on business or hold a directorship in a Cyprus company.

Non-Domiciled Status (17-Year Window)

Non-doms (anyone not domiciled in Cyprus from birth or by 17 years of prior residence) are exempt from Special Defence Contribution on dividends, interest and rental income for 17 years.

Permanent Residence (Investment Route)

Fast-track PR through €300k+ investment in Cyprus real estate or other approved categories. Annual income requirement of €50k+ from outside Cyprus.

Planning risks

Pitfalls to resolve early.

01
The Cyprus Investment Programme (citizenship-by-investment) closed in November 2020. Anyone offering it now is selling stale information.
02
The 60-day rule has strict cumulative conditions — failing any one of the four makes you not tax resident at all.
03
Cyprus capital gains tax of 20% applies to gains on Cyprus-located real estate; only share gains are exempt.
04
Banking has become far more compliance-intensive post-2013; account opening can take months.
05
Special Defence Contribution applies to domiciled Cypriots — non-dom status is what makes Cyprus attractive for investment income.

Frequently asked

Direct answers.

How does the Cyprus 60-day rule work?

You become tax resident with 60 days physical presence if you are not tax resident elsewhere, do not exceed 183 days in any other country, maintain a permanent home in Cyprus, and have business activity or hold a directorship in a Cyprus company.

What does non-domiciled status mean in Cyprus?

Non-doms (those not domiciled in Cyprus by origin or by 17 years of prior tax residence) are exempt from the Special Defence Contribution — meaning 0% on dividends, interest, and most rental income for 17 years.

Is there capital gains tax in Cyprus?

No CGT on shares of foreign companies. 20% CGT on disposal of Cyprus real estate or shares in Cyprus companies that own real estate.

Can I get Cypriot citizenship by investment?

No, that programme closed in November 2020. Citizenship by naturalisation requires 7 years of residence in the past 10 (5 of those years immediately preceding the application).

Does Cyprus tax pension income?

Foreign pension income is taxed at a flat 5% above an annual exemption of €3,420, or under the standard scale at the resident’s option — whichever is lower.