Relocation tax guideMoving to Cyprus: Taxes for Expats 2026
Cyprus taxes residents on worldwide income at rates up to 35%, but non-domiciled residents are exempt from the Special Defence Contribution on dividends, interest, and rental income for up to 17 years - so most investment income goes untaxed. There is no inheritance tax, and capital gains tax applies only to Cyprus property. You can become resident in as few as 60 days.
Cyprus has built a strong draw for investors and retirees on two features: a non-domicile regime that exempts passive investment income, and a 60-day route to tax residency. Capital gains tax reaches only local real estate, and there is no inheritance tax. This guide explains the non-dom exemption, the two residency routes, and the headline rates.
Cyprus: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 15%From 1 January 2026 (12.5% through 31 December 2025) | PwC Worldwide Tax Summariesas of 2026-05-18 |
| Top personal income tax | 35%Top personal income tax rate | PwC Worldwide Tax Summariesas of 2026-05-18 |
| VAT / GST (standard) | 19%Standard VAT rate | PwC Worldwide Tax Summariesas of 2026-05-18 |
| Capital gains | 20%Charged only on gains from Cyprus-situated immovable property (and shares in companies owning such property) | PwC Worldwide Tax Summariesas of 2026-05-18 |
| Inheritance / wealth tax | NoNo inheritance or estate tax (abolished 2000) | PwC Worldwide Tax Summariesas of 2026-05-18 |
The Non-domicile regime regime
Available to Cyprus tax residents who are non-domiciled, for up to 17 years.
A Cyprus tax resident who is not domiciled in Cyprus is exempt from the Special Defence Contribution (SDC) - the tax that would otherwise apply to dividends, interest, and rental income. In practice this means a non-dom resident pays no Cyprus tax on dividends and interest, which is the regime's main appeal for investors and retirees. The exemption lasts up to 17 years of residence.
- No SDC on dividends, interest, or rental income for non-domiciled residents (up to 17 years).
- Capital gains tax applies only to gains on Cyprus-situated immovable property - not to shares or securities.
- A 50% exemption on employment income can apply to high-earning new arrivals (income above a threshold), for up to 17 years.
- No inheritance or estate tax.
Source: PwC Worldwide Tax Summaries - Cyprus (as of 2026-06-24).
| Item | Non-domiciled resident | Domiciled resident |
|---|---|---|
| Dividend income | Exempt from SDC | SDC applies |
| Interest income | Exempt from SDC | SDC applies |
| Duration of the exemption | Up to 17 years of residence | Not applicable |
Source: PwC Worldwide Tax Summaries - Cyprus (as of 2026-06-24).
When you become a tax resident
Cyprus has two routes to tax residency. The standard rule is presence of more than 183 days in a year. The '60-day rule' lets you be resident on as few as 60 days if you do not spend more than 183 days in any other single country and you maintain a Cyprus tie - a business, employment, or directorship plus a permanent home in Cyprus. (A prior condition of not being tax resident in another state was eased from 2026.)
Source: PwC Worldwide Tax Summaries - Cyprus (Residence) (as of 2026-06-24).
The non-dom exemption
The Special Defence Contribution is a Cyprus tax on dividends, interest, and rental income that applies to domiciled residents. Non-domiciled residents are exempt from it for up to 17 years, which means dividends and interest - the income most relevant to investors and retirees - are not taxed in Cyprus. Domicile here is mainly a question of origin and long-term ties, not simply where you live now.
Income tax still applies to employment and business income on the normal scale, but a 50% exemption can reduce the tax on high-earning new employees. The combination of the SDC exemption and that employment relief is what makes Cyprus attractive to mobile professionals and holding-company owners.
Capital gains and inheritance
Cyprus capital gains tax is narrow: it applies only to gains on Cyprus-situated immovable property (and shares in companies that mainly own such property), at 20%. Gains on shares, funds, and other securities are outside its scope. There is no inheritance or estate tax. So for an investor holding a securities portfolio, both the income (via the non-dom SDC exemption) and the gains can fall outside Cyprus tax.
Before you move: what to weigh
- The non-dom exemption is time-limited to 17 years of residence; domicile is assessed on origin and long-term ties, not just current residence.
- The 60-day route has strict conditions - a Cyprus tie plus not being tax resident anywhere else.
- Capital gains tax reaches only Cyprus real estate, not securities; there is no inheritance tax.
- US citizens remain taxable by the US on worldwide income; the Cyprus-US treaty and foreign-tax credits then apply.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Cyprus.
What is the Cyprus non-dom regime?
Cyprus tax residents who are non-domiciled are exempt from the Special Defence Contribution on dividends, interest, and rental income for up to 17 years. In practice, dividends and interest go untaxed in Cyprus, which is the regime's main draw for investors and retirees. Employment and business income is still taxed normally.
What is the Cyprus 60-day rule?
It lets you become a Cyprus tax resident on as few as 60 days a year if you do not spend over 183 days in any other single country and you keep a Cyprus tie - a business, job, or directorship plus a permanent home there. A prior 'not tax resident anywhere else' condition was eased from 2026. Otherwise the standard 183-day test applies.
Does Cyprus tax capital gains?
Only on gains from Cyprus-situated immovable property (and shares in companies mainly owning such property), at 20%. Gains on shares, funds, and other securities are outside the charge. Cyprus also has no inheritance or estate tax, so a securities portfolio can largely escape both income and gains tax.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Cyprus as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.