'%3e%3cpath%20fill='%23eee'%20d='M0%200h512v512H0z'/%3e%3cpath%20fill='%236da544'%20d='M400.7%20222.6h-33.4a111.3%20111.3%200%200%201-222.6%200h-33.4c0%2066.2%2044.5%20122%20105.2%20139.2a37%2037%200%200%200%203.9%2040.5l36.3-29.2%2036.4%2029.2a37%2037%200%200%200%203.7-40.8%20144.8%20144.8%200%200%200%20103.9-138.9z'/%3e%3cpath%20fill='%23ffda44'%20d='M167%20211.5s0%2055.6%2055.6%2055.6l11.1%2011.2H256s11.1-33.4%2033.4-33.4c0%200%200-22.3%2022.3-22.3H345s-11-44.5%2044.6-77.9l-22.3-11.1s-78%2055.6-133.6%2044.5v22.2h-22.2l-11.2-11-33.3%2022.2z'/%3e%3c/g%3e%3c/svg%3e)
Withholding tax in Cyprus 2026
Cyprus withholds almost nothing at the border: dividends and interest flow to non-residents at 0%, leaving only royalties (10%), film rentals (5%) and performer or professional fees (10%) in the net.
Treaties from Cyprus's wide network frequently reduce even those rates to zero.
At a glance
- top rate
- 10% (royalties, entertainers, professional fees)
- entry band
- 0% on dividends and interest
- tax year basis
- Withheld when paid
- filing deadline
- Final for the passive rates; employment settles through payroll
- residency basis
- Cyprus-source payments to non-residents
- regime flag
- No withholding at all between Cyprus payers and resident individuals beyond payroll
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Dividends |
| 0% | — | Interest |
| 10% | Gross | Royalties for rights used in Cyprus (business-free recipients) — treaties often cut this |
| 5% | Gross | Film rentals |
| 10% | Gross | Public entertainers, athletes and professional-service income earned in Cyprus |
| 0% – 35% scale | Salary | Employment exercised in Cyprus — withheld through payroll |
Thresholds & allowances
- Non-resident filing31 July
Non-residents with taxable Cyprus income file under the same rules and scale as residents
Residency
Residency trigger
Payments to Cyprus residents carry no withholding beyond payroll — dividends, interest and royalties arrive gross, with any defence contribution handled separately.
Non-resident treatment
Non-residents keep the same deductions and scale on assessed income, can elect residence treatment for a Cyprus permanent establishment, and rely on treaties to trim the 10%/5% rates.
Notes
- The 10% royalty withholding applies only where the rights are used within Cyprus; rights exploited abroad escape it.
- Cyprus rents paid to non-resident owners bear the 2.65% health charge, but no income-tax withholding — the owner assesses normally.
- European Union rules for faster withholding-tax refunds — Faster and Safer Relief of Excess Withholding Taxes (FASTER) — take effect from 2030; Cyprus has not yet transposed them.
FAQ
What does Cyprus withhold on payments abroad?
0% on dividends and interest; 10% on Cyprus-used royalties (5% for films) and on entertainer or professional fees — often reduced by treaty.
Do non-resident landlords face withholding?
No income-tax withholding — they file and pay at scale rates on 80% of the rent, plus the 2.65% health charge; the old 3% defence contribution on rents ended in 2026.
Figures: tax year 2026, compiled from public sources. Not tax advice.