Cyprus has long been recognised as one of Europe’s most attractive jurisdictions for individuals and businesses alike. Combining a competitive tax framework with EU membership, an extensive double tax treaty network and a stable legal environment, Cyprus continues to be a preferred destination for international investment and relocation.

Below is a summary of some of the key tax benefits available under the Cyprus tax system.

For Individuals

Individuals who become Cyprus tax residents may benefit from:

• The Cyprus Non-Dom Regime, which can provide exemptions from Special Defence Contribution (SDC) on qualifying dividend and interest income for eligible individuals.
• Progressive personal income tax rates, with the first €22,000 of annual taxable income exempt from income tax.
• No inheritance tax.
• No wealth tax.
• No tax on gains arising from the disposal of qualifying securities, subject to applicable legislation.
• Flexible tax residency rules under the 183-day or 60-day tests.

For more information on the Cyprus Non-Dom Regime and whether you may qualify, please read our dedicated article: Cyprus Non-Dom Regime.

For Businesses

Cyprus continues to offer an attractive corporate tax environment, including:

• A corporate income tax rate of 15%, while maintaining many of the exemptions and incentives that have made Cyprus an established international business centre.
• No withholding tax on dividends, interest and royalties paid to non-residents in many circumstances, subject to applicable legislation.
• One of Europe’s most extensive networks of double tax treaties.
• An internationally recognised legal and regulatory framework based on English common law principles.
• Access to the European Union single market.

Why Choose Cyprus?

Beyond its tax advantages, Cyprus offers a compelling environment in which to live and do business:

• European Union Member State.
• Strategic location connecting Europe, the Middle East and Africa.
• Highly skilled professional services sector.
• English widely spoken in business.
• Modern infrastructure and excellent quality of life.

How We Can Help

Whether you are considering relocating to Cyprus, establishing a business or reviewing your international tax structure, our experienced team can provide practical advice tailored to your circumstances.

At Cosmoserve, we assist clients with:

• Tax residency and relocation planning.
• Non-Dom applications and advisory.
• Corporate structuring.
• Company incorporation and administration.
• Tax compliance and ongoing advisory services.
• Accounting, payroll and corporate support.

If you would like to discuss how Cyprus could benefit you or your business, please contact our team for a confidential consultation.

The contents of this publication should be considered to be of a general nature only not referring to any particular business. Before proceeding with any action, please request further advice relating specifically to your business. We will be very pleased to be of assistance.