Cyprus Tax Residency Programme

Located at the crossroads between Europe, the Middle East and Africa, Cyprus offers an excellent strategic location. Together with its EU membership, culture and advanced infrastructure, Cyprus is a highly attractive destination for individuals and their families.

With the correct advanced planning, those who choose to become tax resident in Cyprus are able to minimise and even eliminate tax on certain sources of income. Being a non-domiciled tax resident in Cyprus also provides additional tax benefits.

Tax benefits applicable to non-domiciled tax residents

The following benefits apply to those who qualify as non-domiciled tax residents of Cyprus:

Low progressive income tax rates, with the first €19,500 being tax exempt
No income tax on salaried services rendered outside Cyprus for more than 90 days in a tax year
A 50% income tax exemption on income from Cyprus-based employment, provided that income exceeds €100,000 per year
No tax on profits from disposal of securities, including shares, bonds, options and units in collective investment schemes
A low corporate tax rate of 12.5% for Cyprus tax resident companies
No income tax on dividend and interest income
Tax-free repatriation of profits and capital
Overseas pensions income that exceeds €3,420 is taxed at only 5%
No capital gains tax on assets other than immovable property situated in Cyprus
No wealth, inheritance or gift taxes

Qualification Requirements

The 183-day Rule

Generally, for an individual to be considered a tax resident of Cyprus, they need to be physically present in Cyprus for more that 183 days in the calendar year.

The 60-day rule

The ‘60-day rule’ applies to individuals who meet all of the following requirements within the tax year. They must:

  • Reside in Cyprus for at least 60 days per annum
  • Not reside in any other single state for more than 183 days
  • Not be tax resident in any other country
  • Maintain – either by owning or renting – a permanent home in Cyprus
  • Exercise a business and/or be employed in Cyprus and/or hold an office with a Cyprus tax resident company at any time during the tax year.

Why work with Sovereign?

Sovereign’s extensive network of offices and professional service partners means that we are best placed to assist, advise and support applicants throughout the application procedures. We work closely with applicants during each stage of the process to ensure the success of their Cyprus tax resident application.

Contact Sovereign for further information or to receive an all-inclusive fees quotation

The total costs of an application for the Tax Residency Programme will depend upon a number of factors, including the investment option selected and the number of family members included in the application. Please contact Sovereign to request further information, discuss your personal requirements and/or obtain an all-inclusive fees quotation.

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.