Cyprus continues to be one of Europe’s most attractive jurisdictions for international business, entrepreneurs, investors and internationally mobile individuals.
Its competitive tax system, European Union membership, extensive double tax treaty network and high quality of life make Cyprus an increasingly popular destination for both individuals and businesses seeking long-term stability and tax efficiency.
Below is a summary of some of the principal tax advantages available in Cyprus.
Benefits for Individuals
Individuals who become Cyprus tax residents may benefit from:
- The Cyprus Non-Dom regime, subject to meeting the applicable conditions.
- No Special Defence Contribution (SDC) on qualifying dividend and interest income for eligible non-dom individuals for up to 17 years.
- Competitive personal income tax rates.
- No inheritance tax, wealth tax or gift tax.
- No Cyprus tax on gains arising from the disposal of qualifying securities, subject to the applicable legislation.
- Attractive tax incentives for qualifying new employees relocating to Cyprus.
- The ability to establish Cyprus tax residency under either the 183-day rule or, where applicable, the 60-day rule.
For a more detailed explanation of the Cyprus Non-Dom regime, please refer to our dedicated article:
Cyprus Non-Dom Regime.
Benefits for Businesses
Cyprus also offers numerous advantages for international businesses, including:
- Competitive corporate income tax.
- Extensive network of Double Tax Treaties.
- Intellectual Property (IP) Box regime.
- No withholding tax on most outbound dividend and interest payments, subject to applicable legislation.
- Well-developed legal, accounting and professional services sector.
- European Union membership with access to the EU single market.
- A legal system based on English common law principles.
Why Choose Cyprus?
Beyond its tax advantages, Cyprus offers:
- Strategic location connecting Europe, the Middle East and Africa.
- Stable business environment.
- English widely spoken in business and everyday life.
- Modern banking and professional services infrastructure.
- Excellent international schools and universities.
- High quality healthcare.
- Attractive Mediterranean lifestyle with more than 300 days of sunshine each year.
How UHY Can Help
Whether you are considering relocating to Cyprus, establishing a business or reviewing your international tax structure, our experienced multidisciplinary team can provide practical advice tailored to your objectives.
We can assist with:
- Tax residency planning.
- Cyprus Non-Dom advisory.
- Company formation and corporate structuring.
- Accounting, audit and tax compliance.
- Immigration and relocation support.
- Corporate administration and fiduciary services.
- International tax planning.
For more information on how we may assist you, please contact us at uhy@uhy.com.cy or call +357 22379210.
The contents of this publication are provided for general information purposes only and should not be regarded as legal, tax or professional advice. Specific advice should always be obtained based on your particular circumstances before taking any action.