# Cyprus

 Country code: CY · Currency: EUR · Language: Greek

**Pros**
- Competitive 12.5% corporate tax rate and favorable intellectual property tax regimes.
- Non-domicile status providing significant tax exemptions on global dividend and interest income.
- Strategic geographical position offering a gateway to European and Middle Eastern markets.

**Cons**
- Slow judicial system and bureaucratic inefficiencies delaying contract enforcement and business resolution.
- Persistent corruption risks within public procurement and the legacy of administrative opacity.
- Geopolitical instability stemming from the long-standing division and regional maritime tensions.

Long story short: In Cyprus, you pay a flat 12.5% corporate tax and, once you land the non-dom status, zero tax on dividends for seventeen years.

The flip side: banks, still scarred by the 2013 collapse, will grill you like you're applying for a mortgage just to open a basic account, and the local administration still runs on paper forms and whichever clerk you get lucky with that day.

Other things worth knowing: the banking system is solid again, security is close to flawless in the posh parts of Limassol or Nicosia, the Mediterranean food is generous, and the coves are stunning just a short drive from your desk.

## Will your income be taxed?

Long story short: YES, A LOT.
They'll shear you for up to **35%** at the top marginal rate in **Cyprus**, and the taxman has *long arms*: linger a bit too long, park your economic interests here, and the net closes.

Steep rate, wide catchment: the classic combo of states that don't let go of their cash cows. Don't expect a plane ticket to fix it.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 0 → 35% | progressive · 5 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 25,489 | exempt |
| 25,490 – 37,074 | 20% |
| 37,076 – 48,660 | 25% |
| 48,661 – 83,418 | 30% |
| 83,419 + | 35% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | exists here |  |
| Family centre | does not exist here |  |
| Habitual abode | exists here |  |
| Extended-stay test | exists here |  |

## Will your wealth be taxed?

Long story short: YES, FAIRLY.
**Cyprus** takes **20%** when you sell, and that's the whole story: no annual wealth levy, no inheritance regime.

The state waits for the value to move before reaching for it; while it sits, nobody touches it.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 20% | flat |
| Dividend tax | 17% | progressive |
| Interest income | 17% | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | ZERO TAX | Rate: 0% · Cyprus does not impose Capital Gains Tax (CGT) on assets other than immovable property located in Cyprus. Consequently, crypto gains for casual investors are generally tax-free. However, if the Tax Department determines the activity constitutes 'trading' (business income), it is subject to Personal Income Tax at progressive rates (up to 35%) plus a 2.65% General Healthcare System (GHS) contribution. |
| Crypto-to-crypto | NEUTRAL | a swap is not a taxable realisation event |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES.
Corporate tax in **Cyprus** sits at a *low* **15%**, VAT included in the good mood. Setting up and running a company is cheap; whatever ends up killing your venture here, it won't be the tax bill.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 15% | flat |
| VAT standard rate | 19% | 4 distinct tiers in force |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 5% |
| Food & drink | non-alcoholic | 5% |
| Food & drink | alcohol | 19% |
| Print media | books | 3% |
| Print media | ebooks | 3% |
| Print media | newspapers | 3% |
| Culture | cultural events | 3% |
| Culture | cinema | 3% |
| Culture | theatre | 3% |
| Culture | museums | 19% |
| Culture | sports | 19% |
| Transport | public transit | 9% |
| Transport | rail | 19% |
| Transport | air | 19% |
| Hospitality | hotels | 9% |
| Hospitality | restaurants | 9% |
| Hospitality | takeaway | 9% |
| Health | pharma | 5% |
| Health | medical dev. | 5% |
| Energy | electricity | 9% |
| Energy | natural gas | 19% |
| Energy | district heat. | 19% |
| Energy | domestic fuel | 19% |
| Utilities | water | 19% |
| Utilities | waste | 3% |
| Clothing | kids clothing | 19% |
| Digital & telecom | digital | 19% |
| Digital & telecom | telecom | 19% |
| Digital & telecom | broadcast | 19% |
| Construction | construction | 19% |
| Construction | social housing | 19% |
| Agriculture | farm inputs | 19% |
| Agriculture | animal feed | 19% |
| Personal services | funeral | 19% |
| Personal services | hairdressing | 19% |
| Finance | insurance | 19% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · Cyprus follows English common law principles where a company is a separate legal entity, but the criminal element of 'theft' or 'misappropriation' (e.g., under Sections 274 or 311 of the Criminal Code, Cap. 154) requires a lack of consent or an intent to defraud. In the case of a sole shareholder-director of a solvent company, the individual's consent is legally attributed to the company, negating the 'dishonesty' required for theft. Such acts are instead treated as civil breaches of fiduciary duty, unlawful distributions of capital, or tax violations under the Companies Law (Cap. 113). Criminal liability for 'Fraudulent Trading' (Section 311, Cap. 113) only arises if there is a specific intent to defraud creditors, typically relevant during insolvency. |
| Shareholders privacy | PUBLIC PAYWALL | Department of Registrar of Companies and Intellectual Property |
| Directors privacy | PUBLIC | Department of Registrar of Companies and Intellectual Property |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Ιδιωτική Εταιρεία Περιορισμένης Ευθύνης (Private Limited Company (Ltd)). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration Fees (Name approval, Filing, and Certificates) | USD 406 |  |
| Stamp Duty on Share Capital | USD 116 |  |
| Professional Legal Fees for Incorporation and Documentation | USD 1,912 |  |
| Total | USD 2,433 |  |

## A good fit for a holding?

Long story short: YES.
**Cyprus** pairs a *moderate* treaty network (**48** signed) with a *full participation exemption* (**100%** on qualifying dividends and gains).

A perfectly honest holding base: not the NL/LU/SG first division on treaty count, but the pipes don't leak.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | TERRITORIAL | territorial principle — foreign-source profits generally exempt |
| Participation exemption | 100% | no minimum threshold · no holding period |
| CFC rules | APPLY | Cyprus tax resident companies may be taxed on the non-distributed profits of controlled foreign entities, provided certain conditions are met. |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 0% | non-resident outbound |
| WHT · interest | 0% | non-resident outbound |
| WHT · royalties | 0% | non-resident outbound |
| Tax-haven WHT | 17% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 45 | active |
| Treaties pending | 2 | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Cyprus** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | ALLOWED | naturalised citizens may keep their existing nationality |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 7 years | available path to naturalisation |
| Marriage | 3 years | available path to naturalisation |
| Birth | — | not available |
| Descent | 1 gen | available path to naturalisation |
| Investment | — | not available |

## Is your money watched?

Long story short: YES, CLOSELY.
**Cyprus** signed *every exchange framework that matters* and runs a *public corporate registry*. Whatever you do here (earn, hold, structure) is reported, searchable, or both.

Your money is watched from every angle; if discretion is part of your plan, this isn't your jurisdiction.

**Multilateral reporting frameworks — 4/9 active · 3 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | Signed | 2017 |
| CARF | Signed | 2024 |
| FATCA | In force | 2014 |
| MLI | In force | 2020 |
| BEPS | None | — |
| MAAC | In force | 2014 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: SOMEWHAT.
**Cyprus** is *flagged* by a few national tax administrations (drawn from FR/ES/PT/BR) and sits outside the FATF club.

The friction is selective: anti-abuse rules fire on specific corridors, and counterparties ask more questions than usual. Neither the FATF nor the EU has it on their lists, which keeps the damage contained: a nuisance, not a scarlet letter.

**Blacklist exposure — Listed by 2 authorities**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Listed | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Listed | low-tax list |

## Do you feel free there?

Long story short: PARTLY.
**Cyprus** is an EU member, which puts it on the *digital euro* conveyor belt: a programmable, traceable CBDC built to run on the same rails as the currency itself.

Under *MiCA*, crypto is regulated rather than banned, but the direction of travel for money in the bloc is *state-controlled rails* by default.

Press freedom may sit high (RSF rank **\#77**); financial freedom is caught in a ratchet, and ratchets only turn one way.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 77/180 | score 59 · ↓ 12 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Digital Euro

A digital euro could support the Eurosystem's objectives by providing citizens with access to a safe form of money in the fast-changing digital world.

European Central Bank

   RESEARCH   —   [announce →](https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews250409.en.html "Announcement")    Wholesale Digital Euro

Main motivations are to (i) consolidate and further develop the ongoing work of Eurosystem central banks in this area, and (ii) gain insight into how different solutions could facilitate interaction between TARGET real-time gross settlement (RTGS) services and DLT platforms.

European Central Bank

   PILOT   —   —    Stella

It explores the opportunity for using DLT to improve financial market infrastructure to support payment and securities settlement.

European Central Bank

   RESEARCH   —   [announce →](https://www.boj.or.jp/en/announcements/release_2020/data/rel201009e1.pdf%0D%0Ahttps://www.boj.or.jp/en/announcements/release_2020/data/rel200212a1.pdf%0D%0Ahttps://www.tbstat.com/wp/uploads/2020/08/KPMG-CBDC-Report.FINAL_.v.1.02.pdf "Announcement")

 programs 3

## Connected to the world?

Long story short: EXCELLENT.
**Cyprus** is wired straight into the global money grid: **10/11** of the services we track work here.

*Stripe* onboards you, so you can charge cards from a laptop the day you land. Wise, Revolut, PayPal: pick your rails, they all run. One footnote for your comfort, not your business: *Amazon* doesn't deliver here, so plan on local e-commerce for the doorstep part of life.

**Accept payments — 6/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Available | enterprise psp |
| Mollie | Available | eu payments |
| GoCardless | Available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 3/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Available | personal banking |
| Revolut Business | Available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Cyprus. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Belgium BE  → ](https://stateless.sx/en/country/be) [   Czechia CZ  → ](https://stateless.sx/en/country/cz) [   Slovakia SK  → ](https://stateless.sx/en/country/sk)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Hungary HU  → ](https://stateless.sx/en/country/hu) [   Switzerland CH  → ](https://stateless.sx/en/country/ch) [   Barbados BB  → ](https://stateless.sx/en/country/bb)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Slovenia SI  → ](https://stateless.sx/en/country/si) [   Denmark DK  → ](https://stateless.sx/en/country/dk) [   Italy IT  → ](https://stateless.sx/en/country/it)