Progressive Income Tax 0-35% — Cyprus
Cyprus employment and business income taxed progressively. First €19,500 tax-free. Top rate 35% only on income above €60,000. Competitive rates. Combined with Non-Dom benefits on investment income creates complete package.
Progressive Income Tax 0-35%
Cyprus employment and business income taxed progressively. First €19,500 tax-free. Top rate 35% only on income above €60,000. Competitive rates. Combined with Non-Dom benefits on investment income creates complete package.
Tax Brackets 2026
First €19,500 completely tax-free. Very generous allowance. €1,625/month tax-free income.
€8,500 in this bracket. If earn €28,000: pay 20% × €8,500 = €1,700 total tax.
€8,300 in bracket. Marginal rate system - only income in bracket taxed at 25%.
€23,700 in bracket. Reasonable rate for higher earners by EU standards.
Top rate 35% only on excess over €60,000. Lower than many EU countries (UK 45%, France 55%). Maximum effective rate ~30-32% for high earners.
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Non-Dom Status - 17 Years Tax Advantage
Non-Domiciled status is Cyprus's premier tax benefit. Provides 0% tax on dividends and interest for 17 years. Exempt from Special Defense Contribution. Combined with 0% capital gains creates ultimate tax-efficient regime for investors and business owners.
0260-Day Tax Residency Rule
Cyprus offers easiest tax residency in EU: just 60 days physical presence. Much lower than standard 183 days. Perfect for high-earners wanting EU residency without living full-time. Game-changer for international tax planning.
04Investment Income - Dividends, Interest, Capital Gains
Cyprus is paradise for investment income. Non-Doms: 0% dividends, 0% interest. Everyone: 0% capital gains on securities/crypto. No other major EU country offers this combination. Why wealthy investors flock to Cyprus.
05Corporate Tax & IP Box
12.5% corporate tax - one of EU's lowest. IP Box: 80% exemption = 2.5% effective rate on IP income. Extensive treaty network. No WHT on dividends out. Premier holding company jurisdiction.