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CY

Cyprus

Southern Europe EU EUR

CY · CYP · #162 · 8 cities

Nomad score 65/100 Compare
Top income tax 35.0% Worldwide system
Corporate tax 15.0%
VAT 19.0% standard rate
Tax residency 183 days 69 tax treaties

Cyprus tax profile

Data year: 2026

Tax system
Worldwide Worldwide taxation for Cyprus tax residents. A major reform package took effect on 1 January 2026: corporate income tax rose to 15%, personal tax bands were widened (tax-free threshold €22,000), SDC on rental and passive interest for companies ended, deemed dividend rules were abolished (with transitional rules), and stamp duty on new documents was abolished.
Top PIT rate
35.0%
Corporate tax rate
15.0%
VAT
19.0%
Capital gains tax
20.0% 20% CGT on disposals of Cyprus-situated immovable property and on indirect disposals when at least 20% of share value derives from such property (was 50%). Gains on shares are generally exempt unless the indirect property test applies. Crypto-asset gains are taxed at a flat 8% from 2026.
Social security (employee)
8.8%
Social security (employer)
8.8%
Social security cap (annual)
EUR 68,904
Dividend withholding
0.0%
Interest withholding
0.0%
Royalty withholding
10.0%
Treaty count
69

Income tax brackets

Personal income
Personal income brackets
Bracket min Bracket max Rate
EUR 0 EUR 22,000 0.0%
EUR 22,000 EUR 32,000 20.0%
EUR 32,000 EUR 42,000 25.0%
EUR 42,000 EUR 72,000 30.0%
EUR 72,000 and above 35.0%
Local currency: EUR

Special regimes (2)

Special regimes
NameTypeRate/amountDurationStatus
Non-Domicile Regime Exemption from Special Defence Contribution (SDC) on dividends, interest, and re... Non dom No rate or amount recorded 17yr Active
50% Exemption for Foreign Workers 50% of qualifying Cyprus employment income exempt from personal income tax for h... Percentage exemption No rate or amount recorded 17yr Active

Tax flags

Crypto Rules Participation Exemption Non-Dom Regime Nomad Tax Regime

Tax residency

Days threshold
183 days
Residency rules
Resident if present more than 183 days in the calendar year. Alternatively, the 60-day rule requires at least 60 days in Cyprus, not more than 183 days in any other single state, Cyprus employment or directorship (not terminated during the year), and a permanent home in Cyprus. From 2026, being tax resident in another country no longer blocks the 60-day rule (double residence may require treaty tie-breakers).
Exit tax
No
CFC rules
Yes CFC rules apply when Cyprus residents control foreign entities taxed at less than 50% of the Cyprus corporate rate (effective threshold 7.5% with a 15% CIT rate).
Non-dom regime
Non-domiciled residents remain exempt from SDC on dividends, interest and rents for up to 17 years. From 2026, domiciled individuals generally face 5% SDC on qualifying dividends (not 17%), while certain dividends from pre-2026 profits may still attract 17% SDC if paid by 31 December 2031.
Nomad regime
Cyprus issues a digital nomad residence permit for remote workers from non-EU employers. Tax treatment follows general residence rules; eligible new hires may claim the 50% employment-income exemption (Article 8(23A)) if remuneration and prior non-residence tests are met — not automatic with the visa alone.

Filing information

Fiscal year
01-01 – 12-31
Filing deadline
July 31
Employees and pensioners file electronically by 31 July following the tax year; self-employed with turnover up to €120,000 file by 31 January of the second year after the tax year. From 2026, Cyprus tax residents aged 25–70 must file annually even with zero taxable income.

Sources

Change history

    • Corporate tax rate 12.5 15
    • Income tax brackets updated
    • Special tax regimes updated

    2026 reform refresh — CIT, PIT brackets, social cap, crypto flag, treaty count, non-dom/50% regimes, sources and prose (https://taxsummaries.pwc.com/cyprus/individual/taxes-on-personal-income, https://www.ey.com/en_cy/technical/tax-alert/tax-legi-january-2026)

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