International Tax Planning
Cyprus

EU residency with one of Europe’s strongest non-dom regimes.

Cyprus combines European Union residence with a highly attractive non-domicile regime, low physical-presence requirements and strong planning opportunities for internationally active entrepreneurs and investors.

Discuss Cyprus
Jurisdiction Cyprus
Cyprus flag
Worldwide Dividends 0% Under qualifying Non-Dom status
Region European Union
Tax Residence From 60 Days
Non-Dom Duration Up to 17 Years
Currency EUR
Private Client Advisory

Residency, non-dom status, company structuring and international income planning considered together.

CYPRUS
Cyprus at a Glance

The tax proposition, in four numbers.

01 Worldwide Dividends 0%

Qualifying non-domiciled tax residents can receive worldwide dividend income free from personal income tax.

02 Worldwide Interest 0%

The non-dom regime can also provide zero personal tax on qualifying worldwide interest income.

03 Tax Residence 60 Days

Certain qualifying individuals can establish Cyprus tax residence without spending the traditional 183 days in-country.

04 Non-Dom Period 17 Years

The non-domicile regime can remain available for a substantial long-term planning period.

Why Cyprus

A low-tax base inside the European Union.

Cyprus has become increasingly popular with entrepreneurs from higher-tax European countries because it combines EU residence with a comparatively flexible personal-tax environment.

The key advantage is the Non-Domicile regime, which can remove personal taxation on qualifying worldwide dividends and interest while preserving the practical benefits of living inside the EU.

01
Non-Dom Tax Treatment

Qualifying residents can benefit from zero personal tax on worldwide dividends and interest for an extended period.

02
Low Physical Presence

The 60-day tax residence route makes Cyprus particularly interesting for genuinely mobile entrepreneurs.

03
EU Positioning

Clients retain European residence, banking access and broader EU credibility while benefiting from a more favourable tax regime.

Tax Residence

Two ways to become tax resident.

Cyprus offers both a traditional 183-day route and a significantly more flexible 60-day route for qualifying individuals with real ties to the country.

02
Traditional Residence

183-Day Rule

The conventional route for individuals spending the majority of the year physically resident in Cyprus.

Presence 183+ Days
Tax Residence Standard Basis
Local Home Generally Expected
Profile Full-Time Residents
Residency Pathways

EU and non-EU clients take different routes.

The immigration side is straightforward for EU nationals, while non-EU clients generally need to rely on investment or qualifying company-based residence.

01 EU Citizens MEU1 Yellow Slip

EU nationals already have freedom of movement and can register their residence in Cyprus after establishing a local address and demonstrating the relevant means of support.

Investment Not Required
02 Non-EU Citizens Investment Permanent Residence

A qualifying property investment can provide a permanent residence route for non-EU nationals meeting the applicable income requirements.

Investment From €300,000
03 Non-EU Entrepreneurs Foreign Interest Company

Certain qualifying Cyprus companies can support residence and work permits for founders and specialist employees.

Business Capital Structure Dependent
Non-Domicile Status

This is the core Cyprus advantage.

Once an eligible individual becomes Cyprus tax resident and qualifies as non-domiciled, certain categories of investment income can receive highly favourable treatment.

For internationally active entrepreneurs and investors, this can materially change the taxation of income distributed from operating companies and investment portfolios.

Illustrative Non-Dom Position
Worldwide Dividends
0%
Worldwide Interest Income
0%
Investments Stocks & Securities Gains
Generally 0%
Healthcare GeSY Contribution
Capped
Exact treatment depends on the income type, residence position, domicile status and individual circumstances.
Corporate Structure

The company pays tax. The dividend may not.

Cyprus becomes particularly interesting when personal non-dom treatment is combined with an appropriately structured Cyprus operating company.

Standard Corporate Tax 15%

The standard corporate rate applies to ordinary taxable company profits.

Qualifying IP Income Potentially Lower

The Cyprus IP Box can substantially reduce the effective tax rate on qualifying intellectual-property income.

Distribution Non-Dom Dividend

Remaining company profit may then be distributed to an eligible non-domiciled shareholder with favourable personal treatment.

Example Structure

Company in Cyprus. Dividends to the founder.

A common planning framework for an internationally active entrepreneur genuinely relocating to Cyprus.

01 Individual Cyprus Tax Resident

The founder establishes genuine Cyprus tax residence and qualifies for the applicable non-dom treatment.

02 Operations Cyprus Limited Company

The local company conducts the underlying business and pays applicable Cyprus corporate tax.

03 Distribution Dividend to Founder

Post-tax profits can be distributed to the eligible non-domiciled resident shareholder.

Illustrative only

Salary, dividends, management, substance and corporate residence should be designed around the actual operating business and the founder’s wider international position.

Advanced Planning

Particularly attractive for IP-driven businesses.

Cyprus also operates an IP Box regime that can substantially reduce the effective corporate tax burden on qualifying intellectual-property income.

Potentially Relevant For
01 Software Companies
02 SaaS Businesses
03 Qualifying Patents
04 Eligible Technology IP

Eligibility and the effective rate depend on the specific intellectual property, development activity and nexus rules.

Who Cyprus Suits

Particularly strong for European entrepreneurs.

01
International Entrepreneurs

Founders generating substantial company profits who want to combine EU residence with favourable dividend taxation.

02
Investors

Clients receiving significant dividends, interest or securities gains from international investments.

03
Software & IP Founders

Businesses with qualifying intellectual property may be able to combine non-dom benefits with the Cyprus IP Box.

Important Considerations

The headline rate is not the full story.

01 60-Day Conditions

The low-presence rule has specific conditions and should not be treated as simply spending 60 days in Cyprus and nothing more.

02 GeSY

Certain income can remain subject to Cyprus healthcare contributions even where ordinary personal tax is zero.

03 Company Substance

Corporate residence, management and genuine business substance remain important when operating through a Cyprus company.

04 Leaving Your Existing Country

Cyprus residence needs to be coordinated with a defensible termination of tax residence in the jurisdiction being left.

Long-Term Optionality

A tax base with European permanence.

Cyprus is not only relevant as a short-term tax strategy. EU nationals can obtain permanent residence after a period of lawful residence, while long-term residents may also have a future pathway toward Cypriot citizenship subject to the applicable naturalisation rules.

Strategic Value EU residence, long-term permanence and tax planning can all sit within the same jurisdiction.
Why Global One

We structure more than the non-dom application.

Cyprus works best when residence, domicile status, company management, remuneration, dividends and the client's exit from their previous tax system are coordinated from the beginning.

We assess the entire structure first, then coordinate the Cyprus residence and corporate implementation with the relevant local professionals.

Private Client Advisory

Could Cyprus become your European tax base?

We assess your nationality, business structure, international income, investment portfolio and mobility before determining whether Cyprus and the non-dom regime fit your situation.

Apply for a Consultation
Our Approach
01 Profile Assessment
02 Tax Structure
03 Residency Execution
CYPRUS
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