Non-domiciled tax residence in Cyprus for individuals

Cyprus affords individuals who do not reside in another country for over 183 days in total annually, the opportunity to become non-domiciled tax residents in Cyprus.

Becoming a tax resident in Cyprus can be triggered through either:

  • spending a total of 183 days of the year concerned in Cyprus; or
  • spending a total of 60 days of the year in Cyprus, provided that the individual has ties with Cyprus and maintains a permanent residence in Cyprus (owned or leased).

Ties with Cyprus

Ties with Cyprus require that the individual satisfies one or more of the following:

  • carries out business in Cyprus
  • is employed in Cyprus
  • holds an office in a tax resident company at any time during the year of assessment.

Non-domiciled tax residents in Cyprus should not be tax residents in any other jurisdiction.

Tax rates and benefits

Cyprus is a member of the European Union and the Eurozone. Widely used as a transactional and asset holding hub, Cyprus affords citizenship and tax residence schemes to individual investors.

The income tax rates for natural persons in Cyprus are the following (on worldwide income):

Income Tax rate (%)
Up to €19.500 0
€19.501 to €28.000 20
€28.001 to €36.300 25
€36.301 to €60.000 30
Over €60.000 35

Employment income exceeding €100.000, achieved by an individual who has not been a tax resident in Cyprus prior to his employment and derived from employment exercised in Cyprus, may qualify for a 10-year tax exemption of 50% over such remuneration.

Cyprus tax residents who are non-domiciled can be exempt from special defence contribution on dividends received.

Contact us to discuss your precise requirements.