What is the corporate tax rate in Cyprus?

Cyprus has a headline corporate income tax rate of 15%, one of the lowest in the European Union.

What is the Cyprus IP Box regime?

The Cyprus IP Box regime allows qualifying intellectual property income to be taxed at an effective rate as low as 3%, using the OECD Nexus Approach.

Does Cyprus charge withholding taxes on dividends?

In most cases, Cyprus does not impose withholding taxes on dividends paid to non-resident shareholders under domestic law, making it an efficient profit repatriation jurisdiction.

What is the Non-Dom regime in Cyprus?

Qualifying non-domiciled Cyprus tax residents may be exempt from Special Defence Contribution on dividends, passive interest and rental income. Tax residence, domicile, GHS and source-country tax require separate review.

How can non-EU nationals obtain residence permits in Cyprus?

EU/EEA/Swiss citizens register for a Yellow Slip (Registration Certificate). Non-EU nationals apply for a Pink Slip (Temporary Residence Permit) (temporary residence and work permit). Family reunification permits are also available. After 5 years of legal residence, applicants may qualify for EU long-term resident status.

Business · Tax · Residence · Immigration

Why Incorporate in Cyprus — 2026 Benefits

Cyprus: 15% CIT, approximately 3% IP Box, Non-Dom 0% SDC on dividends, 60-day tax residency, and EU residence permits. A transparent, efficient jurisdiction for founders.

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15%

Corporate Tax Rate

Lowest in the EU

approximately 3%

IP Box Effective Rate

Qualifying IP income

SDC on Dividends

For Non-Dom residents

65+

Double Tax Treaties

Global network

Key Advantages

Why Cyprus for Your Business, Taxes, Residence & Immigration

15%

Corporate Tax Rate

15% CIT rate from 1 January 2026 (raised from 12.5% to align with OECD Pillar Two). Dividend income and gains on securities remain largely exempt.

The 15% rate applies to Cyprus-resident companies and PEs. Stamp duty was abolished, the loss carry-forward extended to 7 years, and the DDD mechanism abolished for post-2026 profits.

approximately 3%

IP Box Effective Rate

Qualifying intellectual property income may attract an effective tax rate as low as 3% through the Cyprus IP Box regime, using the OECD Nexus Approach.

Qualifying IP includes patents and copyrightable software. Trademarks and marketing IP do not qualify. The applicable fraction is based on qualifying R&D expenditure relative to total expenditure on the IP asset.

70+

Double Tax Treaty Network

Cyprus has concluded double taxation treaties with over 70 countries, providing treaty access for reduced withholding taxes and protection against double taxation.

Treaty access is subject to anti-avoidance provisions and substance requirements. Cyprus's common law system and EU membership make it particularly attractive as a holding jurisdiction.

No Withholding Taxes

No withholding taxes on dividends, interest, or royalties paid to non-resident shareholders or lenders in most cases under domestic Cyprus law.

This applies subject to EU Anti-Tax Avoidance Directives and specific treaty provisions. Cyprus does not impose WHT on outbound dividends under domestic law, regardless of treaty status.

EU Jurisdiction

Full EU legal framework, access to EU directives including the Parent-Subsidiary Directive and Interest & Royalties Directive, and OECD treaty network.

As an EU member state, Cyprus companies can benefit from EU directives that eliminate or reduce withholding taxes within the EU, subject to the relevant conditions and anti-abuse rules.

Tax Residency & Non-Dom Regime

Non-domiciled Cyprus tax residents pay no SDC on qualifying dividends and interest. The 60-day residency rule has home, activity and foreign-day conditions; GHS and other taxes require separate review.

The 50% high-earner exemption applies for 17 years to individuals earning over €55,000 from Cyprus employment. The first €22,000 of personal income is tax-free. Non-Dom status is available to anyone not domiciled in Cyprus for 17 of the prior 20 years.

EU Residence & Immigration

Non-EU nationals can obtain Yellow Slip (Alien Registration Certificate) and Pink Slip (temporary residence and work permit) through structured application processes. Family reunification permits available. Path to permanent residency and EU long-term resident status.

Yellow Slip is required for all non-EU nationals. Pink Slip covers employment, self-employment, and family reunification categories. After 5 years of legal residence, applicants may qualify for long-term EU resident status.

Is Cyprus Right for You?

Who Benefits from Cyprus — Business, Tax & Immigration

Cyprus works best for businesses with cross-border activities, IP ownership or development, and international income — but also for individuals seeking personal tax optimisation through the Non-Dom regime, the 60-day rule, or EU residence permits. It is not a one-size-fits-all solution — proper structuring requires careful analysis of your specific circumstances.

SaaS and software companies — With IP income that may qualify for the IP Box regime at approximately 3% effective rate.

International trading and holding businesses — Groups needing an EU-registered entity, holding vehicle, or dividend planning structure.

Founders and HNWIs seeking Non-Dom status — SDC exemption on qualifying dividends and interest. Employment relief and residency require separate eligibility checks.

Individuals using the 60-day tax residency rule — Establish Cyprus tax residency with minimal physical presence — no need for 183 days.

Non-EU nationals seeking residence and work permits — Yellow Slip, Pink Slip, family reunification, and a path to EU long-term resident status.

Remote professionals and digital consultants — Scaling into a corporate structure while benefiting from personal tax advantages under the Non-Dom regime.

Families relocating to Cyprus — Combining corporate setup with personal tax residency, immigration permits, and family reunification.

High earners relocating from high-tax jurisdictions — First €22,000 tax-free, 50% exemption on employment income over €55,000 for 17 years.

How Cyprus Compares

Cyprus vs Other EU Jurisdictions

Compared to Ireland, Luxembourg, the Netherlands, and Malta, Cyprus offers a uniquely balanced combination of low corporate tax, lifestyle, and EU access.

15% CIT vs 25% EU Average

Cyprus has the second-lowest headline corporate income tax in the EU.

Best-in-Class IP Box

The Cyprus IP Box delivers approximately 3% effective rate on qualifying royalties and software income, comparable to Luxembourg's IP regime but accessible to smaller…

Non-Dom: 0% on Dividends & Interest

No equivalent exists in Ireland, Germany, or France. Non-domiciled residents pay zero Special Defence Contribution on dividends, interest, and foreign…

No Withholding Tax on Dividends

Cyprus imposes no domestic withholding tax on dividends to non-residents — unlike the Netherlands (15%), Germany (25%), or France (30%) before treaty…

65+ Double Tax Treaties

Broader treaty network than Malta (75 vs 70+), with strategically important treaties covering Russia, Ukraine, India, UAE, and all major EU member states.

EU Membership + Common Law

Cyprus is the only EU jurisdiction that combines EU passporting rights with a Common Law legal system — making it familiar to UK, US, and Commonwealth…

Cyprus Beyond Tax

The Lifestyle You Actually Want

Tax structure matters — but most founders relocating to Cyprus stay because of everything else. Sun, safety, culture, food, and a quality of life that's hard to match anywhere else in Europe.

340+

Sunny Days a Year

One of the highest sunshine counts in Europe — mild winters (15–20°C) and long warm summers stretching from May to October. Outdoor life year-round.

Top 5

Safest in the EU

Cyprus consistently ranks among the safest countries in Europe and the world.

9,000+

Years of History

UNESCO sites at Paphos and the Painted Churches of Troodos. Greek, Roman, Byzantine, Venetian and Ottoman heritage all in one island.

Med

Mediterranean Lifestyle

Halloumi, meze, fresh seafood, local wine, olive oil. 650+ km of clean coastline with Blue Flag beaches.

English Spoken Everywhere

English is the de facto business language. Government, banking, healthcare, schools and contracts all operate in English — no language barrier for…

GeSY

Modern, Affordable Healthcare

Universal healthcare system (GeSY) plus a strong private network. English-speaking doctors trained in the UK, EU, and US.

World-Class Education

British, American, French, and Russian international schools. Three internationally accredited universities.

30%

Cost of Living vs London

Premium Mediterranean lifestyle for roughly 30–40% less than London, Paris, or Amsterdam.

650+ km of coastlineTwo international airportsSki Troodos in winter, swim in summerEU member, Schengen pendingFibre broadband + 5G nationwideCommon-law-influenced legal system in an EU jurisdiction

Important: This page provides general information about Cyprus as a jurisdiction. It does not constitute legal or tax advice. Tax rules and rates may change. Whether Cyprus is the right structure for your business depends on your specific facts and circumstances. Please seek professional advice before taking any action.

Ready to Start in Cyprus?

Whether you need a company formed, IP Box structured, tax residency established, or a residence permit obtained — book a strategy call to discuss your objectives and the right approach.

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Who Benefits from Cyprus — Business, Tax & Immigration