# Cyprus: taxes, residence and cost of living

Source: https://domicile.wiki/places/cyprus/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- Score for a wealthy family: 78 / 100
- Can EU citizens live here?: free: register as an EU citizen
- Can US citizens live here?: income of €9,568 a year · Category F permanent residence (secured foreign income)
- Other passports: income of €9,568 a year · Category F permanent residence (secured foreign income)
- Tax on a €30M portfolio: €2,150 a year · Non-domiciled resident (SDC exemption, 17 years, extendable)
- Wealth tax: none
- Children inherit: tax-free
- After 60 years: €240,925,000 of €30,000,000 (with no tax at all: €286,928,000)
- Living costs, family of five: €230,169 a year
- EU member: yes
- Currency: EUR
- Capital: Nicosia

## Tax on investments, inheritance and wealth

No tax on gains from shares and bonds (listed or not, domestic or foreign) for any resident; capital gains tax (20%) applies only to Cyprus real estate and shares of companies holding it. No inheritance, estate or gift tax since 2000 and no wealth tax. Dividends: a newcomer without a Cyprus domicile of origin is 'non-dom' for 17 of 20 years and pays no Special Defence Contribution (SDC); only the 2.65% health contribution (GHS, capped at EUR 180,000 of income) applies. After 17 years SDC on dividends is 5% (2026 reform, down from 17%), usually fully offset by foreign withholding tax; non-dom status can be bought for two further 5-year blocks at EUR 250,000 each.

- **Tax resident, Cyprus-domiciled for SDC**: Ordinary Cyprus tax residence for an individual who is domiciled in Cyprus for Special Defence Contribution (SDC) purposes: a Cypriot by domicile of origin, or a foreigner after 17 of the last 20 years of residence (unless the lump-sum extension is bought). A newly arriving foreign family is NOT in this regime for its first 17 years; see the non_dom regime.
- **Non-domiciled resident (SDC exemption, 17 years, extendable)**: Automatic for a new resident without a Cyprus domicile of origin: exempt from SDC on dividends and interest until resident 17 of the last 20 years. From 1 Jan 2026 (Art. 3D SDC Law) a deemed-domiciled person can extend non-dom status for up to two further 5-year periods by paying EUR 250,000 upfront per period (irrevocable, non-refundable, Commissioner approval; Circular 2/2026). Capital gains, inheritance and wealth treatment are the same as standard.

## Income tax

From 1 January 2026 resident income tax is 0% to EUR 22,000, 20% to 32,000, 25% to 42,000, 30% to 72,000 and 35% above. Employees pay 8.8% social insurance up to EUR 68,904 and 2.65% GHS (health) up to EUR 180,000; the self-employed pay 16.6% and 4.0%. The recorded combined rates are 11.45% and 20.6% with the social-insurance cap.

## How to get residence

EU citizens only register. Non-EU citizens (US and others) can get permanent residence by investing EUR 300,000 and showing EUR 50,000 of income, or through the no-investment Category F with EUR 9,568 of foreign income (but a multi-year queue), or a digital nomad visa at EUR 42,000 a year. Citizenship by investment ended in 2020.

- **EU free movement (MEU1 registration)** (Free movement; EU citizens; open): EU citizens register with the Migration Department after 3 months and get permanent residence after 5 years.
- **Fast-track permanent residence by investment (Regulation 6(2))** (Investor residence; US citizens, other passports; open): Permanent residence for a EUR 300,000 property or business investment plus EUR 50,000 a year of income from abroad.
- **Category F permanent residence (secured foreign income)** (Passive income / retirement; US citizens, other passports; open): Permanent residence for people with secured income from abroad of at least EUR 9,568 a year; no investment, but decisions take years.
- **Digital nomad visa** (Digital nomad; US citizens, other passports; open): For remote workers earning at least EUR 3,500 net a month from employers or clients outside Cyprus; capped at 500 permits.
- **Citizenship by investment (Cyprus Investment Programme)** (Citizenship by investment; US citizens, other passports; closed to new applicants): The programme that gave a passport for a EUR 2 million investment no longer exists.
- **Work permits (employment)** (Work; US citizens, other passports; open): Non-EU workers need an employer to apply for an employment permit for a specific job; quotas and sector rules apply.

Citizenship: Under Law 149(I)/2023 (from 19 December 2023): 12 months of lawful residence immediately before applying plus 7 years of lawful residence in the preceding 10, so about 8 years; Greek B1 and a civics test (60%). A faster 4 to 5 year path exists for highly skilled workers who pass Greek and civics exams.

## Inheritance law and trusts

Children are protected: they can claim up to a quarter of the estate, and a spouse or parent up to half where there are no children. A foreign resident can choose the law of their nationality (EU Succession Regulation art. 22). Cyprus has trusts and has been a Hague Trusts Convention state since 2017; foundations exist but their use for private family wealth is not clearly settled.

## Daily life (0-100, higher is better)

- Safety and personal security: 75
- Political and institutional stability: 64
- Corruption and government integrity: 57
- Legal system and property rights: 66
- Healthcare quality and access: 80
- Education quality: 36
- Human development and quality of life: 83
- Infrastructure and connectivity: 75
- Cost of living and housing: 73
- Business opportunities and economy: 76
- Cultural fit and lifestyle: 48

## Research notes

### Cyprus — family-office tax dossier

Last reviewed: 2026-10-15
Tax year: 2026
Reviewer: research agent (Claude), unreviewed by a tax adviser

#### Summary

Cyprus does not tax gains on shares and bonds, and has no inheritance, gift or wealth tax. A new arrival without a
Cyprus domicile of origin is "non-dom" for 17 of 20 years. During that time Cyprus charges no Special Defence
Contribution (SDC) on dividends; the only charge is the 2.65% GHS health contribution, capped at EUR 180,000 of
income. After 17 years, SDC on dividends is 5% (2026 reform, down from 17%), and a 15% foreign withholding tax
usually offsets it in full. Non-dom status can be extended twice, by 5 years each time, for EUR 250,000 per extension.

#### Residence and eligibility

- Tax residence: more than 183 days in the calendar year, or the 60-day rule. The 60-day rule requires at least
  60 days in Cyprus, no more than 183 days in any other single state, a Cyprus business, employment or directorship
  held at year end, and a permanent home in Cyprus all year. From 1 Jan 2026 the condition "not tax resident
  elsewhere" was dropped from the 60-day rule (PwC).
- EU citizens: free movement (MEU1 registration).
- Non-EU (including US): permanent residence by investment of EUR 300,000 excl. VAT (property, company or fund),
  plus secured income of EUR 50,000 + EUR 15,000 for the spouse + EUR 10,000 per child (GK Law Firm).
- Domicile for SDC: domicile of origin (father's at birth), or deemed domicile after 17 of the last 20 years of
  residence (SDC Law art. 2(3)).

#### Capital gains

- Gains on "titles" (shares, bonds, options, fund units) are exempt from income tax unconditionally, including
  trading gains, for every resident, domiciled or not.
- Capital Gains Tax Law: 20% applies only to Cyprus immovable property and to shares of companies holding it. From
  2026 indirect holdings count where at least 20% of the value derives from Cyprus property (was 50%); listed
  shares are excluded.
- Lifetime exemptions from 2026: EUR 150,000 principal residence, EUR 50,000 farmland, EUR 30,000 other; overall
  cap EUR 150,000.
- Gifts to children are exempt from CGT.
- A 0.4% transfer levy applies to the proceeds of Cyprus property sales.
- Crypto gains are taxed at a flat 8% from 2026.
- JSON: listed domestic, listed foreign, private business and foreign real estate = 0.0. Local real estate = 0.2.
  Headline = 0.2.

#### Dividends

- Dividends are exempt from personal income tax.
- SDC (domiciled residents only): 5% on profits of 2026 onwards. Profits up to 2025 stay at 17% if distributed by
  end-2031.
- GHS: 2.65% on dividend income, capped at EUR 180,000 of income. This is excluded from the rates.
- Foreign withholding tax is credited against SDC, unilaterally.
- JSON standard (domiciled): 0.05 domestic and foreign, with a credit. Non-dom regime: 0.0, not_applicable.
- Outbound withholding tax is generally 0%. 17% applies to companies in EU-blacklisted jurisdictions. From 2026
  there is a rate for related low-tax-jurisdiction recipients, which PwC states as both 5% and 17%.
- About 67 treaties, including the US.

#### Inheritance and gifts to children

- Estate duty was abolished from 1 Jan 2000, and there is no gift tax.
- Parent-to-child free transfers of property pay nil Land Registry fees.
- Gifts to children are exempt from CGT.
- The Stamp Duty Law was repealed from 1 Jan 2026.
- The executor must file a statement of the deceased's assets with the Tax Department within 6 months of death.
- JSON: basis none, fully_exempt, other_transfer_cost_rate 0.

#### Wealth tax

- None.
- The immovable property tax was abolished in 2017. Only small municipal fees remain.

#### Special regimes

- **non_dom**: automatic for 17 of 20 years. It exempts dividends (and most interest) from SDC.
- Art. 3D of the SDC Law (in force 1 Jan 2026, Circular 2/2026 of 29 May 2026) allows a deemed-domiciled person to
  stay non-dom for up to two further 5-year periods. The price is EUR 250,000 upfront per period, irrevocable and
  non-refundable, with Commissioner approval.
- The application is due by 30 June of the first year of the period. The transitional deadline was 30 June 2026 for
  persons deemed domiciled in 2024-2026.
- This is not modelled as `lump_sum`, because it only buys continued SDC exemption in years 18-27. It is worth
  little now that SDC is 5% and creditable.

#### Company taxation (kept separate from personal tax)

- Corporate income tax is 15% from 2026 (was 12.5%).
- Dividend income is generally exempt, and gains on titles are exempt.
- Deemed dividend distribution was abolished. Disguised dividend rules were added.
- Losses can be carried forward for 7 years.

#### Cost of living notes

- Limassol: The Heritage Private School charges EUR 12,285 a year for Years 12-13 (2025-26).
- Prime rent: EUR 6,950 a month = median asking rent of 64 four- and five-bedroom villas/detached houses listed on
  Bazaraki on 2026-10-15 in the eastern coastal belt (Agios Tychonas, Germasogeia incl. Potamos, Mouttagiaka,
  Parekklisia, Pyrgos, Limassol Marina). Interquartile range EUR 5,500-12,000. Sample: 480 Limassol-district house
  listings, filtered by title (4-5 bedroom villa/detached) and rent >= EUR 1,000. Asking rents, not contract rents.
- Purchase price, health insurance and housekeeper costs are not sourced.

#### Open questions

- The primary texts were not opened: the SDC Law as amended, Circular 2/2026 and the estate duty abolition law.
- PwC gives both 5% and 17% as the 2026 withholding tax on dividends to related low-tax-jurisdiction companies.
- The treatment of passive interest from 2026 is unresolved.
- Circular 2/2026: KPMG Cyprus (17 June 2026) confirms EUR 250,000 upfront per 5-year extension, at most two
  extensions, irrevocable and non-refundable. The Tax Department PDF KPMG links to redirected to the Tax Department
  home page on 2026-10-15, so the circular itself remains unread.
- Purchase price, health insurance and housekeeper costs have no source yet.

#### Sources

- PwC, Cyprus individual taxes on personal income: https://taxsummaries.pwc.com/cyprus/individual/taxes-on-personal-income
- PwC, Cyprus individual other taxes: https://taxsummaries.pwc.com/cyprus/individual/other-taxes
- PwC, Cyprus income determination: https://taxsummaries.pwc.com/cyprus/individual/income-determination
- PwC, Cyprus residence: https://taxsummaries.pwc.com/cyprus/individual/residence
- PwC, Cyprus corporate withholding taxes: https://taxsummaries.pwc.com/cyprus/corporate/withholding-taxes
- KPMG Cyprus, Circular 2/2026 extensions of the non-dom regime: https://kpmg.com/cy/en/insights/tax-alerts/circular-2-2026-extensions-of-the-non-dom-regime.html
- EY Cyprus Tax Facts 2026: https://www.ey.com/en_cy/cyprus-tax-facts
- Trident Trust, Summary of Cyprus's 2026 tax reforms: https://www.tridenttrust.com/knowledge/news/summary-of-cyprus-s-2026-tax-reforms
- PwC Cyprus via Mondaq, Tax Facts 2023 inheritance tax: https://www.mondaq.com/cyprus/tax-authorities/1342608/tax-facts-figures-2023-inheritance-tax
- GK Law Firm, Cyprus residency by investment: https://gk-lawfirm.com/practice-areas/immigration-law/cyprus-residency-by-investment
- Heritage Private School fees 2025-26: https://www.heritageschool.ac.cy/_files/ugd/db7817_5c89941076374fd2a96b11ab343016b5.pdf
- Bazaraki, houses to rent in Limassol district: https://www.bazaraki.com/real-estate-to-rent/houses/lemesos-district-limassol/

#### Change log
- 2026-10-15: initial research.
- 2026-10-15 (data-quality pass): added prime rent (Bazaraki sample, EUR 6,950/month); re-checked Circular 2/2026 via KPMG (official PDF unreachable).
- 2026-10-15: family rent re-checked against the upper-middle-class standard: kept.


## Residence and succession sources

- [Cyprus permanent residency (updated 13 October 2026)](https://gk-lawfirm.com/cn/practice-areas/immigration-law/cyprus-permanent-residency) — GK Law Firm
- [Amendments to the Cyprus permanent residence programme (Category F)](https://www.dixcart.com/news/amendments-to-the-cyprus-permanent-residence-programme/) — Dixcart
- [Cypriot citizenship by years of residence: new legal requirements](https://www.kyprianou.com/?p=14829) — Kyprianou & Co
- [Revisions to Cypriot citizenship by years of residence](https://www.agplaw.com/?p=26573) — AGP Law
- [Your Europe: Residence rights in another EU country](https://europa.eu/youreurope/citizens/residence/residence-rights/index_en.htm) — European Union
- [Cyprus digital nomad visa 2026](https://remoteworkeurope.eu/guides/cyprus) — Remote Work Europe
- [How to get Cyprus citizenship](https://gk-lawfirm.com/publications/cyprus-citizenship-new-law/) — GK Law Firm
- [European e-Justice: Succession, Cyprus](https://e-justice.europa.eu/166/EN/succession?CYPRUS&member=1) — European e-Justice Portal
- [Regulation (EU) No 650/2012 on succession](https://eur-lex.europa.eu/eli/reg/2012/650/oj) — European Union
- [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law