Becoming tax resident
You are tax resident in Cyprus if you spend more than 183 days there in a calendar year. Alternatively, the 60-day rule applies if you:
- spend at least 60 days in Cyprus in the year;
- spend no more than 183 days in any other single country;
- have a business, job or directorship in Cyprus during the year; and
- own or rent a home in Cyprus throughout the year.
From 2026 you no longer need to prove that you are not tax resident anywhere else to use the 60-day rule.
Income tax from 2026
| Taxable income | Rate |
|---|---|
| Up to €22,000 | 0% |
| €22,001 – €32,000 | 20% |
| €32,001 – €42,000 | 25% |
| €42,001 – €72,000 | 30% |
| Over €72,000 | 35% |
The tax-free band rose from €19,500 to €22,000 in the 2026 reform. A national health contribution of 2.65% also applies to most income, capped at €4,770 a year.
Non-domiciled status
Most people who move to Cyprus are non-domiciled. As a non-dom you pay no Special Defence Contribution on dividends and interest, whether from Cyprus or abroad, although income tax still applies to other income. The status lasts until you have been tax resident for 17 of the previous 20 years.
From 2026, people who reach that limit can extend the status by paying €250,000 for each five-year period, for up to two periods. This is an extension for long-term residents, not a route in for new arrivals.
Pensions
Foreign pensions can be taxed, at your choice each year, either at the normal rates or at a flat 5% on everything above €5,000.
Capital gains and inheritance
Capital gains tax is 20% on gains from Cyprus property, with lifetime exemptions of €150,000 on a main residence (subject to conditions) or €30,000 otherwise. Gifts to a spouse, children or close relatives can be exempt. Cyprus has no inheritance tax; see our inheritance guide.
Routes to residence
- EU citizens can live in Cyprus freely and register their residence.
- Non-EU citizens can apply for a temporary residence permit to live on income from abroad, or for permanent residence through investment: see our permanent residency guide.
- Remote workers earning at least €3,500 net a month from abroad can apply for the digital nomad visa, for one year, renewable for two more.
If you own a company
Corporate tax is 15% from 2026. Dividends paid to Cyprus-domiciled individuals carry 5% Special Defence Contribution; non-doms are exempt. Deemed dividend distribution no longer applies to profits from 2026. See buying through a company.
Questions
What is the tax-free allowance in Cyprus in 2026?
The first €22,000 of taxable income is tax-free, up from €19,500 before the 2026 reform.
How does the 60-day rule work?
You are tax resident if you spend at least 60 days in Cyprus, no more than 183 days in any other single country, have a business, job or directorship in Cyprus and own or rent a home there all year.
Can I buy non-dom status for €250,000?
Not as a new arrival. The €250,000 payment extends non-dom status for five years at a time, up to twice, for people who have already been tax resident for 17 of the last 20 years.
How are foreign pensions taxed in Cyprus?
You can choose each year between the normal rates and a flat 5% on everything above €5,000.
Sources
- PwC Worldwide Tax Summaries: Cyprus, taxes on personal income (reviewed Aug 2026)
- PwC Worldwide Tax Summaries: Cyprus, residence (reviewed Aug 2026)
- EY Cyprus tax alert (Feb 2026)
- Andersen Cyprus: tax reform update effective 1 January 2026
- KPMG Cyprus: Circular 2/2026, extensions of the non-dom regime (Jun 2026)
- Cyprus Mail: Cyprus tax reform 2026, what companies still get wrong (Aug 2026)
- PwC Worldwide Tax Summaries: Cyprus, other taxes (reviewed Aug 2026)
- KPMG Cyprus: Cyprus digital nomad visa scheme
