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Cyprus tax guide 2026
Cyprus rebuilt its tax system on 1 January 2026 and kept its expat superpowers intact: no tax on the first EUR 22,000, no capital gains tax outside local real estate, no inheritance tax, and a non-dom regime that strips dividend and interest charges down to a capped 2.65% health contribution for 17 years. New residents on EUR 55,000+ salaries can halve their taxable pay for 17 years, and crypto gains now have their own flat 8% rate.
- Rate range
- 0% – 35% for residents; 0% band up to EUR 22,000 (2026)
- Key allowance
- New family allowances: EUR 1,000 – 1,500 per child plus EUR 2,000 housing, per spouse
- Tax year
- Calendar year
- Filing deadline
- 31 July of the following year (electronic)
Taxes covered
- Income tax35%
Progressive 0–35% from 2026, with the 0% band at EUR 22,000 and the top rate only above EUR 72,000; a 2.65% capped health contribution runs alongside.
- Dividend tax5% / 0%
Dividends are income-tax exempt; domiciled residents pay a 5% defence contribution (cut from 17% in 2026), non-doms pay none — just the capped 2.65% health charge.
- Capital gains tax0% / 20%
No tax on securities or foreign assets; a separate 20% tax hits only Cyprus real estate and unlisted shares in companies holding it.
- Crypto tax8%
A dedicated flat 8% income tax on crypto gains from 2026 — covering sales, swaps, gifts and payments — with mining taxed under the normal rules.
- Social security8.8% + 2.65%
Employees pay 8.8% social insurance on pay up to EUR 5,742 a month, plus a 2.65% health charge on income up to EUR 180,000 a year.
- Inheritance tax0%
No inheritance tax and no gift tax at all — Cyprus abolished estate duty in 2000 and never brought it back.
- Withholding tax0% / 10%
Nothing withheld on dividends or interest to non-residents; 10% on royalties used in Cyprus (5% film) and on non-resident entertainers and professionals.
Special regimes
- Non-dom regime
Residents without Cypriot domicile pay no defence contribution — dividends and interest cost only the 2.65% health charge, capped, for 17 years — but dividends paid out of profits earned up to 31 December 2025 keep the old 17% rate if received by the end of 2031.
- 50% expat exemption
First-time Cyprus employees earning over EUR 55,000 exclude half their salary from tax for up to 17 years.
- No capital gains tax on securities
Shares and fund gains are tax-free; only Cyprus real estate (and property-rich companies) faces the 20% gains tax.
- Flat 8% crypto rate (new 2026)
Selling, swapping, gifting or spending crypto is taxed at just 8% — one of Europe's lowest dedicated rates.
Recent changes
- 2026-01New income scale: 0% band raised from EUR 19,500 to EUR 22,000, 35% now from EUR 72,000; child, housing, green and insurance allowances introduced.
- 2026-01Defence contribution on dividends cut from 17% to 5%; rental income freed of the contribution; flat 8% rates for crypto gains and employee share options.
- 2026-01Capital gains lifetime exemptions raised — private residence EUR 150,000, farmland EUR 50,000, other property EUR 30,000.