New for 2026: our complete guide to Cyprus non-dom tax status.Read it
Cyprus taxes · 2026 guide

Cyprus taxes. Finally clear.

15% corporate tax. 0% on dividends with non-dom status. Zero inheritance tax. Everything you need to know about Cyprus taxes — structured, sourced, no small print.

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The numbers, in one row

Five rates that change the maths.

0%
Corporate tax
Competitive EU rate
0%
Dividends & interest
For 17 years with non-dom
0%
Inheritance tax
Fully abolished
0%
IP-box rate
On qualifying IP income
0 days
Tax residency
Instead of 183 — conditional

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Side-by-side

United Kingdom vs. Cyprus, line by line.

2026 rates. UK figures shown at the top marginal band for comparison.

Tax
United Kingdom
Cyprus
Corporate tax
25% (above £250k)
15%
Top income tax rate
45% + 2% NI
35%
Dividend tax
39.35% (top rate)
0% with non-dom
Interest income
45% (top rate)
0% with non-dom
Capital gains (shares)
24% (top rate)
0% (except CY property)
Inheritance tax
40% above £325k
0%
Wealth tax
0%
0%
VAT
20%
19%
The status that matters

Non-dom: 17 years of zero tax on dividends.

The non-domiciled status is the real argument for Cyprus. Filed correctly, you pay 0% on dividends and interest for 17 years — no matter where the income originates. Inheritance and wealth tax don't apply at all.

0%
Dividend tax

On worldwide dividends — including from a UK Ltd. or US LLC.

0%
Interest tax

On worldwide interest, including savings accounts.

0 years
Validity

Status valid for 17 of any 20 years after registration.

Requirements
01You haven't been a Cyprus tax resident in the last 20 years.
02You become Cyprus tax resident (60- or 183-day rule).
03You file the non-dom declaration with the Cyprus Tax Department.
04You declare worldwide income on your annual TD1 form.
The shortcut

The 60-day rule: tax residency in two months.

Instead of the usual 183 days, 60 are enough — provided all four conditions are met. Miss one, and you fall back to the standard rule.

01 / 04
60days
Minimum stay

At least 60 days per calendar year physically in Cyprus.

02 / 04
183days
Nowhere else

You must not spend more than 183 days in any other country.

03 / 04
1company
Cyprus Ltd.

Director, employee or business activity in a Cyprus company.

04 / 04
1home
Permanent address

Owned or rented home in Cyprus, available year-round.

Do you meet the 60-day conditions?

We walk through them with you point by point — and tell you straight away if it fits.

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Personal income tax

The first €19,500 is tax-free.

Cyprus taxes employment income progressively — but with a far higher tax-free allowance than the UK and a lower top rate. Entrepreneurs typically structure activity through a Cyprus Ltd. at 15% instead.

From
To
Rate
Note
€0
€19,500
0%
Tax-free
€19,501
€28,000
20%
€28,001
€36,300
25%
€36,301
€60,000
30%
€60,001
and above
35%
Top rate
Source: Cyprus Tax Department, Income Tax Law N. 118(I)/2002.
Who benefits most?

Six profiles where Cyprus almost always wins.

Self-employed & freelancers

Cyprus Ltd. at 15% instead of UK income tax + National Insurance.

  • Cyprus Ltd. in 5 days
  • VAT registration
  • Bookkeeping in English

Investors & passive income

0% on dividends, interest and capital gains on shares with non-dom.

  • Non-dom filing
  • Holding structure
  • Treaty relief planning

Tech & SaaS founders

Effective 2.5% on qualifying IP income via the Cyprus IP-box regime.

  • IP-box structuring
  • Nexus calculation
  • Substance build-out

Digital nomads

Digital Nomad Visa, 60-day tax residency, full EU mobility.

  • Digital Nomad Visa
  • 60-day rule
  • Schengen travel

Retirees

Foreign pensions taxed at a flat 5% or progressively — your choice.

  • 5% flat pension tax
  • Permanent Residency
  • GeSY healthcare

Families & business owners

Generational wealth structured tax-efficiently from day one.

  • 0% inheritance tax
  • Trust structures
  • International schools
Myth check

Four things you've probably read — and that aren't true.

Myth
“Cyprus is a tax haven”
Reality
False. Cyprus is an EU member, OECD-compliant, fully off the EU blacklist, and exchanges tax data with every major country via CRS and DAC6.
Myth
“A brass-plate company is enough”
Reality
No. OECD substance rules are enforced. You need a real office, a local director, and genuine business activity in Cyprus.
Myth
“My home country won't recognise it”
Reality
It will, if you exit properly. The UK, Germany, Ireland and France all have full double-tax treaties with Cyprus. Done correctly, the setup is bulletproof.
Myth
“You need to be wealthy”
Reality
Not true. From around €80,000 annual profit, a Cyprus Ltd. + non-dom structure already pays for itself for most self-employed individuals.
The path

Five steps from first call to first tax filing.

  1. 01

    Discovery call

    Day 1

    30 minutes, free. We map the right route, key deadlines and a realistic cost range.

  2. 02

    Strategy & timeline

    Week 1

    Written plan: exit-tax considerations, Cyprus setup, application order, fixed-fee quote.

  3. 03

    Cyprus Ltd. & residency

    Weeks 2 – 8

    Company incorporation, Yellow Slip or Pink Slip, TIC registration, bank account opening.

  4. 04

    Non-dom filing

    Month 2 – 3

    Non-dom declaration filed with the Tax Department the moment you become tax-resident.

  5. 05

    Ongoing compliance

    Ongoing

    Annual TD1, bookkeeping, audit, VAT — and home-country reporting handled together.

Frequently asked

The questions we hear every week.

Almost always above about €80,000 annual profit. You pay 15% Cyprus corporation tax instead of UK income tax + National Insurance + dividend tax. With non-dom status, you also pay 0% on extracted dividends — versus 39.35% at the UK top rate.
You become Cyprus tax resident after spending only 60 days per year there — provided you don't spend more than 183 days in any other country, you run or work for a Cyprus Ltd., and you have a permanent home available year-round.
The UK doesn't have a general exit tax, but the 5-year temporary non-residence rule can claw back gains and dividends if you return within five years. We sequence the move so the rule doesn't bite.
Yes, if real substance exists: office, local director, genuine management in Cyprus and sufficient days on the island. OECD substance rules are consistently audited — we build the substance from day one.
Cyprus Ltd. in 5 working days. Yellow Slip for EU citizens 6 – 8 weeks. Bank account 2 – 4 weeks in parallel. Realistic timeline: 2 – 4 months end to end.
Cyprus Ltd. incorporation: around €1,700 + VAT. Annual fees from €3,500. Our advisory for the full move: from €4,500 — fixed fee, never hourly.
For the 60-day rule, yes: an owned or rented home that is available to you year-round. It doesn't need to be large, but it must be genuinely at your disposal.
Yes. Capital gains on crypto are tax-free for individuals in Cyprus. Full-time traders should structure the activity through a Cyprus Ltd.
Start here

30 minutes. Free. Plain English.

We listen, review your case, and tell you honestly whether Cyprus is the right move — and if so, which sequence is the fastest.

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What to bring
  • Rough sense of income & current structure
  • Current residence & citizenship
  • Timeline you're considering
  • Any complications (company shares, kids, property)