Personal tax advisers in Cyprus

Are you a Cyprus tax resident?

Cyprus taxes residents on their worldwide income and non-residents only on Cyprus-source income, so the first question is always whether you are tax resident. You are resident automatically if you spend more than 183 days in Cyprus in a calendar year. You can also qualify under the 60-day rule, which since the 2026 reform has four conditions: you spend at least 60 days in Cyprus; you do not spend more than 183 days in any single other country; you keep a permanent home in Cyprus, owned or rented; and you carry on a business, are employed, or hold an office in a Cyprus tax-resident company, not ceasing before the year ends. The old fifth condition — that you were not tax resident anywhere else — was removed from 2026; where two countries both claim you, the relevant double-tax treaty's tie-breaker (permanent home, centre of vital interests, habitual abode) decides.

Non-domiciled status and what it saves

Cyprus treats you as non-domiciled if you have not been a Cyprus tax resident for at least 17 of the last 20 years before the tax year, subject to the domicile-of-origin and domicile-of-choice analysis. A qualifying non-dom is exempt from the Special Defence Contribution (SDC) on dividends and on passive interest, and that income also sits outside personal income tax. This is not a blanket "tax-free" position: a General Healthcare System (GHS/GESY) contribution of 2.65% still applies to that dividend and interest income, subject to the shared annual income cap of €180,000. The benefit runs for up to 17 years from the start of your Cyprus tax residency. By contrast, an individual who is resident and domiciled pays SDC at 5% on dividends and 17% on interest (the interest rate fell to 17% back in 2024), plus the same 2.65% GHS.

Income tax bands

Personal income tax is progressive. From the 2026 tax year the first €22,000 is tax-free; income from €22,001 to €32,000 is taxed at 20%, from €32,001 to €42,000 at 25%, from €42,001 to €72,000 at 30%, and anything above €72,000 at 35%. Dividends and most passive interest fall outside these bands — for them the live question is SDC and GHS, not income tax.

The 50% exemption for new employees

If you take up first employment in Cyprus with annual remuneration above €55,000, Article 8(23A) can exempt 50% of that employment income from income tax for up to 17 years, provided you were not Cyprus tax resident for the required number of consecutive years beforehand and you meet the other statutory conditions. The earlier regime under Article 8(23), which needed remuneration over €100,000 and ran for 10 years, is grandfathered for those already in it. We check which exemption, if any, fits your start date and history.

Pensions, rental income and crypto

A foreign pension is taxed at a flat 5% on the amount above €5,000 a year, or you can elect each year to be taxed at the normal progressive rates where that produces a lower bill. Rental income is taxed under the ordinary progressive income tax on the net amount; a 20% deduction applies to rent from buildings (so 80% of building rent is taxable), alongside capital allowances and qualifying interest. SDC on rents was abolished from 2026, but the 2.65% GHS contribution still applies, and there is no flat "10% rental tax" in Cyprus. Gains on crypto-assets are taxed at a flat 8% under the 2026 regime, with mining income treated separately.

Registering and filing

To establish your residency we register you for a Tax Identification Number through the Tax For All (TFA) portal, document the residency facts, and — where you need to prove residency to another country — apply for a tax residency certificate after the year-end with the supporting travel evidence. Your personal income tax return is filed annually via TAXISnet by the published deadline, and we handle provisional tax and any objection or appeal that follows an assessment.