Optimize your Tax obligations
Tax plan on your
personal or
company earnings.
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Start saving tax based on your income from anywhere in the world, with no need to live permanently in the Cyprus.
Minimize your income tax on your worldwide earnings
No need for a permanent presence in the country
50% tax exemption on remunerations arising from first employment in Cyprus
Multiple Tax deductions and exemptions on income
Cyprus Tax Resident
Why become a Cyprus Tax Resident?
The Cyprus tax residency offers individuals the opportunity to enjoy Cyprus Income tax benefits on their global income without the requirement to permanently reside in the country.
Cyprus Tax Residency is a popular choice among professionals, entrepreneurs, CEOs, self- employed professionals, and artists who can work from anywhere in the world.
By becoming Tax Residents of Cyprus, individuals can leverage the country’s favorable tax regime to minimize tax
liabilities on their global income.
No capital gains tax ,for the sale of immovable property located outside of Cyprus
No tax is applied on dividends and interest from fixed deposit accounts
Transactions with Titles (shares, securities, repos etc) are exempt from taxation
No gift tax is applicable
No inheritance tax or wealth tax is applied
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Taxation in Cyprus
For New Tax Residents.
Individuals who were not residents of Cyprus before commencing employment in the country are eligible for a 50% tax deduction on their remuneration, provided their annual income exceeds €55,000. The deduction is applied for 17 years from the year of employment.
Thus if your salary is €55,000 you will be taxed on 50% of that, as per the below.
*Please note that different tax rates apply for local residents.
Additional deductions on income you should know.
Contributions to trade unions or professional bodies - Entire amount is deductible.
Rental income - 20% of rental income (for income tax purposes) is deductible.
Donations to approved charities (with receipts) - Entire amount is deductible.
Tax paid at source can be credited in Cyprus against the same income,even in the absence of a double tax treaty.
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How to become a
Tax Resident in Cyprus?
There are 2 ways for an individual to apply for Cyprus Tax Residency.
When an individual spends more than 183 days in Cyprus in a calendar year, is considered a tax resident.
The “60 days rule” is the second way to acquire the tax residency.
To meet the residency criteria in Cyprus, individuals must adhere to the following conditions:
- Do not exceed a total of 183 days of residence in any other single state.
- Are not classified as tax residents in any other state.
- Reside in Cyprus for a minimum of 60 days.
- Maintain other specified ties to Cyprus (ex. business activities, employment in Cyprus, holding a directorial position in a Cyprus tax-resident company)
The Procedure
- First we choose your eligibility under the 60 or 183 days rule.
- Acquiring a TIC (Tax Identification Number) as a resident with a taxable income in Cyprus
- Collection of documentation for the application
- Application submission
- Issuance of the Tax Residency certificate - This can be as fast as 7 working days
Talk with a tax advisor
Cyprus Non-Dom Status
Non-Domicile status for tax purposes.
Additional tax exemptions.
What is SDC?
SDC is a tax that applies on dividends, on rental income and interest.
SDC tax does not apply in the case of Cyprus tax resident individuals who have the non-domiciled status acquired. Non-dom individuals that earn dividends and interest, will only be taxed in Cyprus with the General Health System Tax at 2.65%.
How to acquire the Non-Domicile status?
Other Services by Axion
Migration Services
Our firm offers migration services for professionals and their families in Cyprus. Simply leave your request.
Business Relocation Services
We can help you relocate your company and employees by setting up a business hub in Cyprus. This allows entrepreneurs and their teams to relocate in Cyprus with family members.
Frequently Asked Questions
No, but you have to earn income from Cyprus sources.TIC can be given to both Cyprus tax residents and Non tax residents .
No, the Cyprus tax residency is not provided by default due to a passport, as the conditions of the tax residency need to be satisfied.
1.Provided that your annual income is above 19.5k you have to register with the tax department and get a TIC.
2. Submission of an annual tax declaration for your worldwide income (even if income is not taxable) Submission is due by 31\07 following the reporting year, if your income is above 70k you have an obligation to submit audited Finacnial Statements on your personal level.
Yes, GESY is applicable on all income (taxable or not) with a maximum amount of chargeable income being 180k.
The confirmation is done by applying for a Tax Residency Certificate.
An individual needs to become a Cyprus Tax resident first and then can apply for the Non-Dom status.
If you have immovable property in Cyprus which is generating rental income (irrespective of the fact whether you are a Cyprus tax resident or not) you will have an obligation to pay Income Tax (if the income is above the taxable threshold of 19.5k), GESY and SDC (applicable for tax residents, having their domicile in Cyprus).
It is worth noting that if you are renting your property as a holiday accommodation i.e. a short stay rental, you have an obligation to apply for a license with accordance to the new law 9(I)/2020 which amended the current ‘Law on the Regulation of Establishment and Operation of Hotels and Tourist Accommodations of 2019 (N. 34(I)/2019)’ .
The taxation will depend on whether you will be considered as a Cyprus tax resident or not. If you become a Cyprus tax resident, you will be taxed in Cyprus on your worldwide income. If you will not become a Cyprus tax resident, then you will be taxed in Cyprus on your income received in performing your duties as per your Nomads visa, apportioned by the days actually spent in Cyprus.