Favourable Cyprus Tax Regime — Strategic Advantages for Enterprises, IP & Individuals
Following the latest Cyprus tax reform, Cyprus cements its position as a premier European Union jurisdiction for international business, IP-driven enterprises, and globally mobile individuals—combining low effective taxation with full OECD BEPS and EU compliance.
Core Pillars of the Cyprus Tax Framework
Aligned With OECD Pillar Two Standards
A headline 15% corporate income tax rate paired with Notional Interest Deduction (NID) on new corporate equity (reducing effective tax further) and tax-neutral EU/non-EU group reorganizations.
Participation Exemption & Securities Disposal
Exempt foreign dividends, zero Capital Gains Tax on the sale of shares, bonds, and non-Cyprus real estate, and 0% withholding tax on dividends and interest paid to non-residents.
Cyprus IP Box Regime (80% Nexus Exemption)
80% of qualifying profits derived from patents, copyrighted software, SaaS, AI, and qualifying intangible assets are exempt from corporate tax—resulting in an effective rate of approximately 2.5%.
Non-Domiciled Personal Tax Regime
Qualifying non-domiciled Cyprus tax residents enjoy 0% tax on worldwide dividend and passive interest income (exempt from Special Defence Contribution for 17 years), plus no inheritance or wealth tax.
The 60-Day Tax Residency Rule & 50% Expatriate Exemption
- Spend at least 60 days in the Republic of Cyprus during the tax year.
- Do not reside in any other single state for more than 183 days and are not tax resident in any other jurisdiction.
- Carry out business, hold employment, or serve as an officer (director) in a Cyprus tax-resident company, and maintain a permanent home in Cyprus (owned or rented).
- 50% income tax exemption for up to 17 years for first-time relocating executives and specialists earning over €55,000 annually.
Let’s Build Your Future — Together
Speak directly with our senior advisors in Nicosia or Athens for a confidential consultation tailored to your corporate, tax, fiduciary, or family wealth objectives.