Q: Are dividends taxed in Cyprus?

For Non-Doms: 0% tax on all dividends (Cyprus and foreign). For regular residents: 0% income tax but 17% Special Defense Contribution on Cyprus company dividends over €3,420/year. Foreign dividends 0% for everyone. Non-Dom status eliminates SDC - massive benefit for business owners and investors.

Q: Are capital gains and crypto taxed in Cyprus?

Capital gains from securities (stocks, bonds, funds): 0% for everyone. Cryptocurrency gains: 0% (not capital asset for CGT purposes). Only exception: 20% on disposal of Cyprus immovable property. Foreign property gains: 0%. One of most favorable regimes in EU for traders and investors.

Q: What are social security contributions in Cyprus?

Employees: 8.8% (social insurance 8.3% + redundancy 0.5%), capped at €61,308 annually. Employers: ~8.8%. Self-employed: 16.6%. NHS contributions separate: 2.65% employee, 2.90% employer (no cap). Total employee ~11.45% below cap. Much lower than Western Europe. Cover pension, healthcare, unemployment.

Q: When do I file Cyprus tax return?

Tax year: calendar year (Jan-Dec). Filing deadline: July 31 following year for self-employed/business income, September 30 for individuals with only employment. Provisional tax payments due July 31 and December 31 current year. E-filing via TAXISnet. Employees with only salary often don't need separate filing if employer withholds correctly.

Q: Does Cyprus have wealth or inheritance tax?

NO wealth tax. NO inheritance tax. NO estate duty. NO gift tax. Cyprus does not tax wealth, estates, or gifts. Property transfer fees apply when buying real estate (progressive up to 8%, reduced for close relatives). Extremely favorable for estate planning and wealth preservation. Major reason wealthy individuals choose Cyprus.

Q: What is Cyprus IP Box regime?

80% exemption on qualifying IP income (patents, copyrighted software, models). Effective corporate tax rate: 2.5% on IP profits (12.5% standard rate × 20%). Must meet nexus requirements linking IP development to Cyprus. Very attractive for tech companies, software developers, R&D-intensive businesses. One of EU's most generous IP regimes.

Q: What is corporate tax in Cyprus?

Corporate income tax: flat 12.5% - one of EU's lowest. Extensive treaty network (65+ DTTs). 0% withholding tax on dividends paid out (usually). Notional interest deduction on equity. Participation exemption on qualifying dividends. IP Box 2.5% rate. Makes Cyprus premier holding company and IP jurisdiction in EU.

Question 1

How is income tax calculated in Cyprus in 2026?

Accepted Answer

Cyprus uses progressive system: 0% up to €19,500, 20% on €19,500-€28,000, 25% on €28,000-€36,300, 30% on €36,300-€60,000, 35% above €60,000. First €19,500 completely tax-free for everyone. Social contributions 8.8% employee, capped. Non-Dom status provides major exemptions on foreign income, dividends, interest for 17 years.

Question 2

What is Cyprus Non-Dom status?

Accepted Answer

Non-Domiciled status: if not Cyprus tax resident for 17 of last 20 years before moving, you qualify. HUGE BENEFITS for 17 years: 0% tax on dividends (any source), 0% on interest income, exempt from Special Defense Contribution (17%) on dividends/interest. Combined with 60-day residency rule and 0% capital gains on securities/crypto, makes Cyprus one of most tax-efficient EU jurisdictions.

Question 3

How to become Cyprus tax resident with 60-day rule?

Accepted Answer

Cyprus offers unique 60-day residency (vs 183 days elsewhere). Requirements: stay 60+ days in Cyprus, not tax resident elsewhere (< 183 days anywhere), maintain business/employment in Cyprus, have permanent home (owned/rented). Much easier than other countries. Combined with Non-Dom = powerful tax planning tool.

Question 4

Are dividends taxed in Cyprus?

Accepted Answer

For Non-Doms: 0% tax on all dividends (Cyprus and foreign). For regular residents: 0% income tax but 17% Special Defense Contribution on Cyprus company dividends over €3,420/year. Foreign dividends 0% for everyone. Non-Dom status eliminates SDC - massive benefit for business owners and investors.

Question 5

Are capital gains and crypto taxed in Cyprus?

Accepted Answer

Capital gains from securities (stocks, bonds, funds): 0% for everyone. Cryptocurrency gains: 0% (not capital asset for CGT purposes). Only exception: 20% on disposal of Cyprus immovable property. Foreign property gains: 0%. One of most favorable regimes in EU for traders and investors.

Question 6

What are social security contributions in Cyprus?

Accepted Answer

Employees: 8.8% (social insurance 8.3% + redundancy 0.5%), capped at €61,308 annually. Employers: ~8.8%. Self-employed: 16.6%. NHS contributions separate: 2.65% employee, 2.90% employer (no cap). Total employee ~11.45% below cap. Much lower than Western Europe. Cover pension, healthcare, unemployment.

Question 7

When do I file Cyprus tax return?

Accepted Answer

Tax year: calendar year (Jan-Dec). Filing deadline: July 31 following year for self-employed/business income, September 30 for individuals with only employment. Provisional tax payments due July 31 and December 31 current year. E-filing via TAXISnet. Employees with only salary often don't need separate filing if employer withholds correctly.

Question 8

Does Cyprus have wealth or inheritance tax?

Accepted Answer

NO wealth tax. NO inheritance tax. NO estate duty. NO gift tax. Cyprus does not tax wealth, estates, or gifts. Property transfer fees apply when buying real estate (progressive up to 8%, reduced for close relatives). Extremely favorable for estate planning and wealth preservation. Major reason wealthy individuals choose Cyprus.

Question 9

What is Cyprus IP Box regime?

Accepted Answer

80% exemption on qualifying IP income (patents, copyrighted software, models). Effective corporate tax rate: 2.5% on IP profits (12.5% standard rate × 20%). Must meet nexus requirements linking IP development to Cyprus. Very attractive for tech companies, software developers, R&D-intensive businesses. One of EU's most generous IP regimes.

Question 10

What is corporate tax in Cyprus?

Accepted Answer

Corporate income tax: flat 12.5% - one of EU's lowest. Extensive treaty network (65+ DTTs). 0% withholding tax on dividends paid out (usually). Notional interest deduction on equity. Participation exemption on qualifying dividends. IP Box 2.5% rate. Makes Cyprus premier holding company and IP jurisdiction in EU.

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Tax Guides for Cyprus

Non-Dom Status - 17 Years Tax Advantage

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Progressive Income Tax 0-35%

Investment Income - Dividends, Interest, Capital Gains

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FAQ

How is income tax calculated in Cyprus in 2026?

What is Cyprus Non-Dom status?

How to become Cyprus tax resident with 60-day rule?

Are dividends taxed in Cyprus?

Are capital gains and crypto taxed in Cyprus?

What are social security contributions in Cyprus?

When do I file Cyprus tax return?

Does Cyprus have wealth or inheritance tax?

What is Cyprus IP Box regime?

What is corporate tax in Cyprus?

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