Europe · EUR
Cyprus
Reviewed 2026-06-21
Top income tax
35%
Self-employed SS
Yes
VAT
19%
Capital gains
0%
Exit tax
No
Nomad visa
Yes
64
/ 100
Tax efficiency45
Ease to enter80
Ease to exit81
Cost of living70
Internet31
English100
Cyprus levies progressive personal income tax with a tax-free band up to 22,000 euros after the 2026 reform and a 35% top rate above 72,000 euros, while gains on shares and other securities are exempt and there is no wealth or inheritance tax. Non-domiciled residents pay no tax on most dividend and interest income, which makes the island attractive for solopreneurs who can route earnings through a Cyprus company now taxed at 15%. Self-employed individuals must pay social insurance at 16.6% plus a 4% health contribution, and residency can be established under either the 183-day or the lighter 60-day rule.
Personal income tax
Income tax structureProgressive
Top income tax rate35%
Entry income tax rate20%
Top rate threshold$77,760
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate8.8%
Employer SS rate8.8%
Indirect & other taxes
VAT standard rate19%
Capital gains rate0%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate15%
WHT on dividends0%
CFC rulesYes
Incentives & special regimes
Special expat regimeYes
Expat regime nameNon-domicile (non-dom) regime plus 50% income tax exemption for new-resident high earners over 55,000 euros
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$3,780
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index58.8
Internet speed141.74 Mbps
English proficiencyHigh
Civil liberties87
Sources
- PwC Worldwide Tax Summaries — Cyprus Individual Taxes on personal income
- PwC Worldwide Tax Summaries — Cyprus Individual Other taxes (VAT and social insurance)
- KPMG — Cyprus tax reform legislation enacted and effective January 1, 2026
- Gov.cy Migration Department — Cyprus Digital Nomad Visa Scheme
- Numbeo — Cost of Living Index by Country
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.