Cyprus Tax Residency Programme
Available to both Non-EU and EU nationals, the Cyprus tax residency programme provides preferential tax incentives for qualifying, non-domiciled individuals who establish residency in Cyprus.
The main qualification requirements are as follows:
- ‘The 183-day Rule’ – For an individual to be considered a tax resident of Cyprus under standard terms, they are required to be physically present in Cyprus for more than 183 days in a calendar year.
- ‘The 60-day Rule’ – A reduced physical presence requirement applies to individuals who:
- Do not reside in any other single state for more than 183 days within a tax year.
- Are not tax resident in any other country within a tax year.
- Maintain (by owning or renting) a permanent home in Cyprus within a tax year.
- Establish a business and/or are employed in Cyprus and/or hold an office with a Cyprus tax resident company at any time during the tax year.
Tax Efficient Benefits
The Cyprus Tax Residency Programme provides non-domiciled tax residents the following tax benefits:
01
No income tax on dividend and interest related income
02
No income tax on salaried services rendered outside Cyprus for more than 90 days in a tax year
03
Low progressive income tax rates, with the first €19,500 being tax exempt
04
A 50% income tax exemption on income earned through Cyprus based employment for 17 years, provided annual income exceeds €55,000 per annum*
05
No tax on profits from disposal of securities, including shares, bonds, options and units in collective investment schemes
06
A low corporate tax rate of 12.5% for Cyprus tax resident companies
07
Tax free repatriation of profits and capital
08
Overseas Pensions income that exceed the amount of €3,420 euro is taxed at only 5%.
09
No Capital Gains Tax on assets other than immovable property situated in Cyprus
10
No wealth taxes
11
No inheritance taxes
12
No gift taxes
*The exemption applies for a period of 17 tax years or until the provisions of this Article are abolished, whichever is the earlier. It is only available to those who have not been tax residency in Cyprus during the last 17 years.
Interested in Cyprus Tax Residency Programme?
Get in Touch
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
