Maksym Stepanenko
Managing Partner, Crystal Tax
International client projects since 2012: company structures, tax, immigration, DUNS and NCAGE. 50+ jurisdictions.
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You become Cyprus tax resident after 183 days in Cyprus in a year or under the 60-day rule. A resident without a Cyprus domicile (non-dom) pays no special defence contribution (SDC) on dividends and interest; domicile is deemed after 17 years of residence out of 20. From 2026 the first €22,000 of income is taxed at 0%.
Tax residence, non-dom status and dividends from your own company · numbers before you move
In brief
- Residence: more than 183 days in Cyprus in a calendar year, or the 60-day rule with extra conditions.
- Non-dom: 0% SDC on dividends and interest. Domiciled residents pay 5% SDC on dividends from 2026 profits and 17% on interest.
- Income tax bands from 2026: 0% up to €22,000, then 20%, 25%, 30% and 35% above €72,000.
- New residents: 50% of employment income above €55,000 exempt for 17 years, if not Cyprus resident for 15 consecutive years and first employed in Cyprus from 1 January 2022.
- Companies pay 15% on profit from 2026 (12.5% until the end of 2025).
- Cyprus residence only works once you have ceased to be resident in your previous country under its rules and the tax treaty.
Personal tax residence in Cyprus
183-day rule
A person present in Cyprus for more than 183 days in aggregate in the tax (calendar) year is resident (ITL s.2).
60-day rule
You can also be resident with less presence if all of the following hold: at least 60 days in Cyprus in the year; no more than 183 days in any other single state; no tax residence in another state; throughout the year you carry on a business or are employed in Cyprus or hold an office in a Cyprus company; and you keep a permanent home in Cyprus, owned or rented.
Losing the conditions
If the Cyprus business, employment or office ends during the year, the 60-day rule fails for that year.
Digital nomads
According to the Migration Department, a digital nomad permit holder who stays over 183 days becomes Cyprus tax resident, provided they are not tax resident in any other country.
Income tax bands from 2026
| Annual income | Rate |
|---|---|
| up to €22,000 | 0% |
| €22,001 — €32,000 | 20% |
| €32,001 — €42,000 | 25% |
| €42,001 — €72,000 | 30% |
| over €72,000 | 35% |
The bands apply to salary, self-employment income and other income subject to income tax for every resident, non-doms included.
Non-dom status and the special defence contribution
SDC is a separate levy on dividends, interest and rent. Under SDC Law s.2 it applies only to residents who are domiciled in Cyprus. A person who has been Cyprus resident for 17 of the last 20 years is deemed domiciled.
| Income | Domiciled resident | Non-dom resident |
|---|---|---|
| Dividends from 2026 profits | 5% SDC | 0% |
| Dividends from profits up to 2025, distributed within 6 years | 17% SDC | 0% |
| Interest | 17% SDC | 0% |
The 70% deemed dividend distribution rule now covers only 2024 and 2025 profits (s.3Γ); profits from 2026 are no longer deemed distributed for SDC purposes.
Dividends from your own Cyprus company
The usual founder model: the company pays 15% corporate tax and distributes profit as dividends, and SDC at shareholder level depends on domicile, 0% for a non-dom and 5% for a domiciled resident. A director's salary is taxed under the bands above and carries social contributions. We model the salary and dividend mix around your income and where your family lives.
Non-dom status does not shield you from your previous country. If you remain tax resident in Ukraine or elsewhere, that country taxes your worldwide income and may apply its CFC rules to the Cyprus company. Dual residence is resolved under the treaty; the Ukraine–Cyprus convention sets the order, starting with the permanent home and centre of vital interests.
50% salary exemption for new residents
Under ITL s.8(23A), 50% of remuneration from employment in Cyprus is exempt where the annual amount exceeds €55,000. Conditions: first employment in Cyprus started on or after 1 January 2022, and the person was not Cyprus resident for 15 consecutive years before it. The exemption runs for 17 tax years and covers employees, including salaried directors.
Intellectual property regime
The Income Tax Law contains a regime for income from qualifying intellectual property under the OECD nexus approach, with the relief tied to the share of the company's own development spending. We did not verify the regime's parameters against the primary source in this review, so no figures are given here; we calculate the relief from the statute for each specific asset.
What to check before you move
- Where you remain tax resident under your previous country's rules, and how a dual residence is resolved under the treaty.
- Whether you meet the 60-day rule: Cyprus employment or office all year, a home, days spent in other countries.
- Domicile: how many years you have already been Cyprus resident (threshold 17 of 20).
- Income mix: dividends, salary, interest, rent, each with its own tax.
- Immigration status: tax residence does not give the right to live in Cyprus; a residence permit does (residence permit in Cyprus).
Tell us where you live and pay tax today, which income you expect and how many days a year you will spend in Cyprus. We will prepare a tailored proposal: a tax calculation and a plan for moving your residence.
Related pages
- Company registration in Cyprus and taxes: 15% corporate tax, filings, treaty rates.
- Residence permit in Cyprus: permit types and tax residence.
- CFC rules: tax and reporting for owners in Ukraine.
- VAT registration in Cyprus: rates and the registration threshold.
- UAE vs Cyprus vs Estonia: three common choices compared.
Sources: Income Tax Law 118(I)/2002 (s.2, s.4, s.8(23A), 2026 bands), Special Defence Contribution Law 117(I)/2002 (s.2, s.3, s.3Γ, s.4) — consolidated texts at cylaw.org; Business in Cyprus: income tax and VAT; Migration Department: digital nomads; Ukraine–Cyprus convention and 2015 Protocol. Checked on 9 October 2026.
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Frequently asked questions
Can I become Cyprus tax resident with fewer than 183 days?
What does non-dom status give in Cyprus?
How long does Cyprus non-dom status last?
What is the tax on dividends in Cyprus in 2026?
What is the zero-rate band in Cyprus in 2026?
Do I need to give up tax residence in Ukraine?
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