Investment Income - Dividends, Interest, Capital Gains — Cyprus
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.
Investment 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.
Dividends
Complete exemption on all dividends - Cyprus companies, foreign companies, any source. Can receive millions tax-free.
Dividends exempt from income tax for everyone. Regular residents pay 17% Special Defense Contribution on Cyprus company dividends over €3,420/year. Non-Doms exempt from SDC.
Interest
Bank interest, bond income completely tax-free. Massive advantage for fixed-income portfolios.
Non-Non-Doms pay 30% Special Defense Contribution on interest (or 3% if certain conditions met). Big difference vs Non-Dom.
Capital Gains
Stocks, bonds, funds, cryptocurrency: 0% capital gains tax. Applies to ALL residents. No holding period requirement. Day trading or long-term investing - both 0%.
Only exception: 20% tax on gains from selling Cyprus real estate. Various exemptions for primary residence, family transfers. Foreign property: 0%.
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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.
03Progressive 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.
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.