Cyprus expat tax guide
Europe · how a foreigner who moves to Cyprus is taxed · 2026 · High-tax for movers
If you move to Cyprus, you become a tax resident when 183-day rule, or the 60-day rule (ties to Cyprus and not tax-resident elsewhere over 183 days). As a resident you are taxed on a worldwide basis — Residents are taxed on worldwide income for income-tax purposes, but a non-domiciled new resident is fully exempt from the Special Defence Contribution, so dividends and interest are effectively untaxed. The top personal income tax rate is 35%. A foreign pension is treated as: Foreign pensions taxed either at a flat 5% over EUR 3,420/yr or under the normal scale (taxpayer's annual election). Cyprus also offers the Non-dom (17 years) + expat exemptions regime, which can sharply change this picture. It has a US tax treaty and lacks a US totalization agreement. Overall it reads as high-tax for movers for an inbound mover. General information, not tax advice — verify with Cyprus's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Cyprus expat tax at a glance
| Question | Cyprus (2026) |
|---|---|
| When you become tax resident | 183-day rule, or the 60-day rule (ties to Cyprus and not tax-resident elsewhere over 183 days) |
| Residency day-count trigger | 183 days |
| How residents are taxed | Worldwide — Residents are taxed on worldwide income for income-tax purposes, but a non-domiciled new resident is fully exempt from the Special Defence Contribution, so dividends and interest are effectively untaxed. |
| Top personal income tax rate | 35% |
| Foreign pension treatment | Foreign pensions taxed either at a flat 5% over EUR 3,420/yr or under the normal scale (taxpayer's annual election) |
| Foreign capital gains / dividends | Gains on securities (shares, bonds, funds, ETFs) are unconditionally exempt for all residents; dividends/interest are exempt from income tax and, for non-doms, exempt from SDC too |
| Special expat / non-dom / retiree regime | Non-dom (17 years) + expat exemptions |
| US income tax treaty | Yes |
| US social-security totalization | No |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for Cyprus, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to Cyprus
The first thing that matters is tax residency: 183-day rule, or the 60-day rule (ties to Cyprus and not tax-resident elsewhere over 183 days). The 183-day line is the headline trigger, but a home, family or business ties can make you resident sooner — so counting days alone is risky.
Once resident, Cyprus taxes your worldwide income, so income earned abroad is in scope unless a treaty or special regime says otherwise. The top 35% rate only bites at the highest income band — an average earner pays less.
Foreign pensions and investments
Foreign pension: Foreign pensions taxed either at a flat 5% over EUR 3,420/yr or under the normal scale (taxpayer's annual election). Foreign capital gains and dividends: Gains on securities (shares, bonds, funds, ETFs) are unconditionally exempt for all residents; dividends/interest are exempt from income tax and, for non-doms, exempt from SDC too. These outcomes can be overridden by a double-tax treaty, which decides whether the source country or Cyprus taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
The Non-dom (17 years) + expat exemptions regime
A new resident who is non-domiciled in Cyprus is exempt from the Special Defence Contribution for 17 years, making foreign and local dividends/interest effectively tax-free; first-time employees earning over EUR 55,000/yr get a 50% income-tax exemption for 17 years.
Special regimes have eligibility tests, time limits and sunset dates that change frequently. Treat the summary above as a starting point and verify the current terms with Cyprus's tax authority before relying on it.
US citizens and social security in Cyprus
| Question | Cyprus |
|---|---|
| US income tax treaty? | Yes |
| US social-security totalization agreement? | No |
| Tax basis for residents | Worldwide |
| Top personal income tax | 35% |
A US tax treaty with Cyprus helps reassign taxing rights and reduce withholding, and US citizens lean on the Foreign Earned Income Exclusion and Foreign Tax Credit to avoid double income tax. With no totalization agreement, you can be exposed to social-security-type charges in both the US and Cyprus. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to Cyprus
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| Cyprus (this country) | Worldwide | 35% | Non-dom (17 years) + expat exemptions |
| Italy | Worldwide | 43% | Lump-sum flat tax + impatriate regime |
| Greece | Worldwide | 44% | 7% pensioner flat tax / non-dom EUR 100k |
| United States | Worldwide | 37% | FEIE / FTC for citizens abroad |
| Ecuador | Worldwide | 37% | 5-year new-resident territorial election |
| New Zealand | Worldwide | 39% | Transitional resident exemption |
Frequently asked questions
When do you become a tax resident of Cyprus?
183-day rule, or the 60-day rule (ties to Cyprus and not tax-resident elsewhere over 183 days). The headline trigger is 183 days. Once resident, Cyprus taxes you on your worldwide income. This is general information for 2026, not tax advice — verify with the official authority.
How does Cyprus tax a foreign pension?
Foreign pensions taxed either at a flat 5% over EUR 3,420/yr or under the normal scale (taxpayer's annual election). Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
What is the Non-dom (17 years) + expat exemptions regime in Cyprus?
A new resident who is non-domiciled in Cyprus is exempt from the Special Defence Contribution for 17 years, making foreign and local dividends/interest effectively tax-free; first-time employees earning over EUR 55,000/yr get a 50% income-tax exemption for 17 years. It is a headline summary for 2026; conditions and sunset dates change, so verify the current rules with Cyprus's tax authority.
Is Cyprus good for US citizens or retirees?
Cyprus has a US income tax treaty and does not have a US social-security totalization agreement. Without a totalization agreement, you can owe social-security-type contributions in both the US and here. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for Cyprus compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. US income tax treaty in force since 1986. NO US totalization agreement. From 2026 the 35% top PIT band starts at EUR 72,000; non-doms remain fully SDC-exempt. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with Cyprus's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21