Cyprus
CY
EUR€
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. |
Personal income
0 → 35%
progressive
Corporate
12.5%
flat
Capital gains
20%
flat
VAT (standard)
19%
standard rate
i
8.3
DIVIDEND PIPELINE
i
7
HOLDING
i
3.8
VERY LOW TAX
i
2
EASY CITIZENSHIP
i
1.5
PRIVACY GRADE
i
0.9
CRYPTO HAVEN
─ On this page
01
Will Cyprus tax what you earn?
02
Will Cyprus tax what you own?
03
Is it easy to run a company in Cyprus?
04
Is Cyprus good for your holding company?
05
What does it cost to come and go from Cyprus?
06
Will Cyprus protect your privacy?
07
Is Cyprus itself a liability?
08
Will you feel free in Cyprus?
01/08
Will Cyprus tax what you earn?
●income tax
●tax residency
●territorial system
YES, A LOT. Cyprus taxes personal income heavily (top marginal rate 35%), and its definition of tax residence is wide: prolonged stay, economic centre of gravity, the net closes. The classic combo of high rate and broad catchment. Leaving is rarely as simple as buying a plane ticket.
Personal income taxi
0 → 35%
progressive · 5 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
+2.7%
General Health System (GHS) contribution on employment, pension, and investment income (capped at EUR 180,000)
+4%
General Health System (GHS) contribution on self-employed income (capped at EUR 180,000)
+2.3%
Special Defence Contribution (SDC) on rental income for Cyprus tax residents and domiciled individuals
+8.8%
Social insurance contribution for employees (capped at EUR 66,612)
+16.6%
Social insurance contribution for self-employed persons
Tax residence testi
60/183 days
●
183-day rule
●
Economic interest
○
Family centre
●
Habitual abode
●
Extended-stay test
●
Just one rule above is enough to make you tax-resident here.
02/08
Will Cyprus tax what you own?
●capital gains
●wealth tax
●inheritance
●dividends
●interest
YES, FAIRLY. Cyprus taxes capital gains at 20% on disposal, with no annual wealth overlay and no inheritance regime. The state takes its cut when value moves, not while it sits.
Capital gainsi
20%
flat · +0.4% sale proceeds from all disposals of immovable property or shares in companies holding such property (Immovable property transfer levy)
Dividend taxi
17%
flat
Interest incomei
17%
flat
Wealth taxi
NONE
no annual wealth tax · no real-estate wealth tax · no net-worth assessment
Crypto · tax regimei
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-cryptoi
NEUTRAL
a swap is not a taxable realisation event
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
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.
03/08
Is it easy to run a company in Cyprus?
●corporate tax
●criminal liability
●public registry
●VAT
●IP box
YES. Corporate profits in Cyprus are taxed lightly (12.5% at the standard rate), with an IP-box regime dropping qualifying IP income to 2.5%. Low headline, lower effective.
Corporate taxi
12.5%
flat · +3% Special Defence Contribution (SDC) on gross rental income (reduced by 25%) in addition to standard CIT · +15% Global minimum top-up tax (DMTT/QIIR/QUTPR) for multinational enterprise groups with consolidated annual turnover exceeding EUR 750 million
IP Box · Patent Boxi
2.5%
vs. 12.5% corp
patents
copyrighted software
designs
plant varieties
industrial processes
Cyprus IP Box Regime
· net income
Misuse of corporate assetsi
NO CRIMINAL LIABILITY
Civil Matter / Breach of Fiduciary Duty
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 privacyi
PUBLIC PAYWALL
Department of Registrar of Companies and Intellectual Property
Directors privacyi
PUBLIC
Department of Registrar of Companies and Intellectual Property
Incorporation costi
Private Limited Company (Ltd)
Ιδιωτική Εταιρεία Περιορισμένης Ευθύνης
Government Registration Fees (Name approval, Filing, and Certificates)
USD 405
Stamp Duty on Share Capital
USD 116
Professional Legal Fees for Incorporation and Documentation
USD 1,909
Total
USD 2,429
VAT standard ratei
19%
5 distinct tiers in force
0%
3%
5%
9%
19%
Food & drink
5%
food
5%
non-alcoholic
19%
alcohol
Print media
3%
books
3%
ebooks
3%
newspapers
Culture
3%
cultural events
3%
theatre
Transport
9%
public transit
0%
air
Hospitality
9%
hotels
9%
restaurants
9%
takeaway
Health
5%
pharma
3%
medical dev.
Energy
9%
electricity
Utilities
3%
waste
Digital & telecom
19%
digital
19%
telecom
19%
broadcast
Construction
5%
construction
5%
social housing
04/08
Is Cyprus good for your holding company?
●treaty network
●participation exemption
●withholding
YES. Cyprus offers a moderate treaty network (48 signed) paired with a full participation exemption (100% on qualifying dividends and gains). A respectable holding jurisdiction. Not in the NL/LU/SG elite tier on treaty count, but the through-flow is clean.
Territorial systemi
Individuals
WORLDWIDE
Corporates
TERRITORIAL
Individuals: worldwide income taxation regardless of source.
Corporates: territorial principle — foreign-source profits generally exempt.
Participation exemptioni
100%
no minimum threshold · no holding period
CFC rulesi
APPLY
Cyprus taxes non-distributed profits of foreign entities or permanent establishments where a local taxpayer holds over 50% control and the foreign tax paid is less than half of what would be due in Cyprus.
WHT · dividendsi
0%
non-resident outbound
WHT · interest
0%
non-resident outbound
WHT · royalties
0%
non-resident outbound
Tax-haven WHT
17%
penalty rate · blacklisted destinations
Treaties signedi
45
active
Treaties pending
2
in negotiation
Tax treaty networki
origin · CY
0%
> 0%
no treaty
⌖
Inspect a country
Hover any country on the map to read its withholding-tax treaty with CY.
| Country | Status | Dividends | Interest | Royalties |
|---|---|---|---|---|
|
|
|
|
|
|
| ∅ // no treaties match | ||||
05/08
What does it cost to come and go from Cyprus?
●exit tax
●territorial system
●dual citizenship
SOME. Cyprus taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.
Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
naturalised citizens may keep their existing nationality
Citizenship paths
●
Residence
●
Marriage
○
Birth
●
Descent
○
Investment
06/08
Will Cyprus protect your privacy?
●info exchange
●corporate registries
NOT AT ALL. Cyprus has signed every exchange framework that matters and operates a public corporate registry. Whatever you do here (earn, hold, structure) is reportable, accessible, or both. Privacy is not the strategy in this jurisdiction.
Multilateral reporting frameworks
4/10 active
· 4 pending
CRS
2017
CARF
2024
FATCA
2014
MLI
2020
BEPS
—
MAAC
2014
GLOBAL FORUM
—
EOIR
—
CRYPTO-CARF
2024
CRYPTO TRAVEL RULE
—
07/08
Is Cyprus itself a liability?
●blacklists
●FATF standing
SOMEWHAT. Cyprus is flagged by one or two national tax authorities and sits outside FATF membership. Selective friction: anti-abuse rules trigger on transactions in specific corridors, and counterparties tend to ask more questions.
Blacklist exposure
Listed by 2 authorities
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08
Will you feel free in Cyprus?
●press freedom
●crypto
●CBDC
●EU
PARTLY. Cyprus is an EU member, which puts it on the trajectory of the digital euro: a programmable, traceable CBDC designed to run on the same rails as the currency itself. Under MiCA, crypto is regulated rather than banned, but the direction of travel for financial expression in the bloc is state-controlled rails by default. Press freedom may sit high (RSF rank #77); financial freedom is on a clear ratchet.
Press freedom · RSF indexi
77/180
score 59 · ↓ 12 ranks year-on-year
Central bank digital currencyi
| 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 → |
|
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 → |
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.
NOTABLY MORE FAVORABLE
Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE
Same family of strategies, lower total score.