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Types Tax for Foreigners

Secure the EU’s highest personal tax-free threshold. Fully compliant with the December 22, 2025, legislative finality.

Cyprus is the premier destination for international entrepreneurs and digital nomads. Following the landmark tax overhaul, the 2026 framework offers unprecedented benefits for foreign nationals, starting with a €22,000 tax-free limit and guaranteed 0% tax on dividends.

  • €22,000 Tax-Free Personal Income (New for 2026)
  • 0% Tax on Dividends & Passive Interest (Non-Dom)
  • 60-Day Residency Pathway for Global Founders
  • 15% Competitive Corporate Tax Rate
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Why Choose Cyprus for Business?

Feature2025 Rules2026 Voted Reality
Tax-Free Threshold€19,500€22,000 (Highest in EU)
Corporate Tax12.5%15.0% (Global Standard)
SDC on Rental Income2.25%0.0% (Abolished)
Personal Tax Bands20% starts at €19.5k20% starts at €22k
Annual Levy€350€0 (Abolished)

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1. Company Formation
Register your Cyprus Ltd. under the 15% CIT rate. Ideal for international trading and IP holding.

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2. 60-Day Tax Residency The “Nomad Rule.”
Obtain Cyprus residency with just 60 days on the island to lock in your tax-free status.

Info about 60-Day Rule

3. Non-Dom Status Application
Eliminate tax on your global dividends and interest for 17 years. The ultimate wealth preservation tool.

Info about Non-Dom Status

4. Tax Consulting Call
Speak with a Senior Strategist to map your current assets against the 2026 Cyprus reforms.

Book your Tax Strategy Call

Tax Benefits for Expats in Cyprus

  1. The 50% Salary Exemption: Foreigners earning over €55,000 per year enjoy a 50% exemption on their personal income tax for 17 years. In 2026, this remains the most powerful incentive for high-earning professionals relocating to the island.

  2. Capital Gains Immunity: Cyprus does not tax the disposal of shares, bonds, or other securities. For foreigners with global portfolios, this means 0% Capital Gains Tax on the majority of their wealth, regardless of residency length.

  3. Social Insurance & GeSY: Contribution rates have been optimized for 2026. While you benefit from the €22,000 threshold, your contributions to the National Health System (GeSY) remain capped, ensuring high take-home pay compared to the UK, Germany, or France.

Frequently Asked Questions about Tax for Foreigners in Cyprus

Do foreigners pay tax in Cyprus?

Only on income exceeding €22,000. Most expats living on dividends or foreign investments pay 0% tax due to the Non-Domicile regime.

Passive foreign income (dividends/interest) is 100% exempt for Non-Doms. Active income (salaries) earned for work done outside Cyprus for >90 days/year is also tax-exempt.

Starting in 2026, all gains from the disposal of crypto-assets are taxed at a flat 8% rate.

Non-residents are only taxed on income sourced within Cyprus. However, most foreigners choose the 60-day rule to become “Tax Residents” without living there full-time, allowing them to access the 0% dividend tax and the €22,000 threshold.