Cyprus Tax Rates
Cyprus offers one of Europe's most attractive tax regimes for international business, featuring a 15% corporate tax rate (increased from 12.5% in January 2026 to align with OECD Pillar Two), no withholding tax on outbound dividends, no capital gains tax (except on Cyprus immovable property), and a non-domicile regime exempting foreign dividends and interest for up to 17 years. Cryptocurrency gains are now taxed at 8% (effective January 2026). The country's EU membership, extensive treaty network, and favorable IP regime make it a popular holding and IP company jurisdiction.
Top Income Tax Rate
35%
Corporate Tax Rate
15%
VAT / Sales Tax
19%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
Cyprus applies progressive income tax rates from 0% to 35%, with a generous €19,500 tax-free allowance. The non-domicile regime exempts foreign dividends and interest income from personal tax for up to 17 years. A 50% income tax exemption applies to new residents earning over €55,000 (previously €100,000) for up to 17 years, and a 20% exemption (up to €8,550) is available for income from employment in Cyprus.
| Income Range | Tax Rate |
|---|---|
| €0 – €20K | 0% |
| €20K – €28K | 20% |
| €28K – €36K | 25% |
| €36K – €60K | 30% |
| €60K+ | 35% |
Corporate Tax
Cyprus levies corporate income tax at 15% (increased from 12.5% effective January 1, 2026 to comply with OECD Pillar Two global minimum tax requirements). The IP box regime provides an 80% exemption on qualifying IP income, resulting in an effective rate of 3%. The participation exemption covers dividends from qualifying subsidiaries and capital gains on disposal of shares. There is no withholding tax on dividends, interest, or royalties paid to non-residents.
Standard Rate
15%
Capital Gains Tax
Cyprus does not levy capital gains tax on the disposal of securities (shares, bonds, debentures, options). Capital gains tax of 20% applies only to gains from the disposal of immovable property situated in Cyprus. This makes Cyprus extremely attractive for holding companies and investment structures.
Rate
0%
VAT / Sales Tax
Cyprus applies a standard VAT (ΦΠΑ) rate of 19%, with reduced rates of 9% and 5%, and zero-rating for essential goods. The 5% rate on first residence acquisition (up to 200 m²) is a notable incentive for home buyers.
Standard Rate
19%
Cryptocurrency Tax
From January 1, 2026, Cyprus introduced an 8% tax on cryptocurrency capital gains for individuals. This replaces the previous exemption where crypto gains were treated as tax-free capital gains from securities. Crypto trading that constitutes a business activity remains subject to corporate or income tax at standard rates. The non-dom regime can provide additional exemptions on foreign crypto income.
Tax Treaties
Cyprus has approximately 65 double taxation treaties in force. Its strategic location and favorable tax regime make it a gateway between Europe, the Middle East, and Asia. Some treaties (particularly with Russia) have been affected by geopolitical developments.
Treaty Network
65
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Cyprus
See how much you could save by moving here from your current country.
$-9,322
Tax in United States
$24K
24.4% effective
Tax in Cyprus
$34K
33.7% effective
Additional Cost
38.3%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
