Before you commit to relocating your tax residency, you want a single reference that shows you exactly what you're looking at. No summaries, no ranges, just rates.
Here's the full Cyprus 2026 tax rate picture, organized by category. All figures are sourced from the Ministry of Finance and reflect the December 2025 reform that took effect on January 1, 2026.
Corporate Tax
15% flat rate on net profits for Cyprus Ltd companies.
This was raised from 12.5% in the 2026 reform. It's still among the lowest corporate rates in the EU, and it applies equally to resident and non-resident companies incorporated in Cyprus. There's no tiered rate based on profit size.
For IP-intensive businesses, the IP Box regime brings the effective rate on qualifying intellectual property income down to 2.5%. That applies to royalties, licensing revenue, and similar income from software and patents developed substantially in Cyprus.
Personal Income Tax
Standard brackets for 2026, after the threshold increase:
| Income (EUR) | Rate |
|---|---|
| 0 - 22,000 | 0% |
| 22,001 - 32,000 | 20% |
| 32,001 - 42,000 | 25% |
| 42,001 - 72,000 | 30% |
| Above 72,000 | 35% |
Note: the zero-rate threshold was EUR 19,500 before the reform. It increased to EUR 22,000 in January 2026. If you're running salary through a Cyprus company, that adjustment matters.
Dividends
This is where Cyprus gets interesting.
For Non-Domiciled residents: dividends are taxed at 2.65% GHS only. No Special Defence Contribution (SDC). The effective rate on dividend income for a Non-Dom founder is effectively that 2.65%, plus the 15% corporate tax already paid by the company. Combined, you're looking at roughly ~5% effective total rate.
For domiciled residents: SDC at 5% applies in addition to the 2.65% GHS. Total: 7.65% on dividends.
Cyprus Non-Dom status is what creates this difference. It's available to most foreign residents automatically for up to 17 years, with no minimum income or wealth requirement.
Capital Gains Tax
0% on disposal of shares in any company (Cyprus or foreign), provided the company does not own Cyprus immovable property directly.
This applies to equity in startups, stock options, crypto tokens classified as securities, and foreign listed shares. No holding period requirement, no threshold. Zero.
The only CGT in Cyprus applies to immovable property transactions, at 20% on the gain. That's a separate regime and doesn't touch financial assets.
Crypto Tax
8% flat rate on crypto gains, introduced in 2026. This is a new category that replaces the previous ambiguity (gains from crypto were technically treated as income in some cases).
The 8% applies to profits from selling, swapping, or otherwise disposing of cryptocurrency. It's a flat rate on the gain, not on gross proceeds. GHS of 2.65% also applies, but only on the first EUR 180,000 of annual income.
Cyprus now has one of the lowest and clearest crypto tax rates in the EU. For context: Germany taxes crypto gains as income (up to 45%), France charges 30% flat, and the UK applies CGT at 18-24%.
GHS Healthcare Contributions
The GHS (GESY) contribution applies to income of all types:
- 2.65% on employment income, dividends, rental income, and most other income
- Cap: EUR 4,770 per year (i.e., contributions are capped at 2.65% of EUR 180,000; income above that is exempt)
This contribution funds the public healthcare system and entitles you to GESY coverage.
VAT
- Standard: 19%
- Reduced: 9% (restaurants, hotels, some transport)
- Further reduced: 5% (books, medicines, basic foods)
- Zero: exports outside Cyprus, certain B2B services to EU VAT numbers
VAT registration is required once your annual turnover exceeds EUR 15,600. Below that threshold, it's optional.
Social Insurance
- Employees: 8.8% employee contribution + 8.8% employer contribution on gross salary
- Self-employed: 16.6% on declared income
- Cap: applies at EUR 62,868 annual insurable income (2026 rate)
Social insurance contributions fund pension and unemployment benefits. They're separate from GHS.
How Residency Connects to These Rates
To benefit from the Non-Dom rates on dividends, you need to establish Cyprus tax residency. The most flexible route is the 60-day tax residency rule, which lets you qualify without spending the majority of the year in Cyprus.
For EU citizens, residency registration requires the MEU1 certificate (the Yellow Slip). This is a civil registration document, not a visa. The process takes a few weeks and is handled through the Civil Registry.
Non-EU citizens follow a different path involving either a Category F visa or the digital nomad visa, depending on situation.
What Changes Nothing (Good and Bad)
Things that do NOT affect these rates:
- Your nationality (EU or non-EU)
- The size of your company (no SME surcharge or threshold cliff)
- Whether your income was earned inside or outside Cyprus (for dividends under Non-Dom)
Things that DO matter:
- Your domicile status for SDC purposes
- Whether you've been a Cyprus tax resident for 17+ of the last 20 years (affects Non-Dom eligibility)
- The source of capital gains (shares vs property)
For most developers and founders relocating from higher-tax jurisdictions, the combined picture is: 15% corporate + ~5% effective on extracted dividends + 0% on share sales. That's before any treaty benefits or IP Box optimization.
