New to Cyprus? Your Complete Tax Guide
This note maps the main taxes and processes that new residents and founders ask about. It covers Personal Income Tax, Special Defence Contribution, Corporate Income Tax, VAT, Capital Gains Tax and the immigration routes that connect to these outcomes. It is general information and not advice for your facts.
On this page
Personal Income Tax
Personal Income Tax applies to employment and business income among other categories. We assess salary and dividend mixes where a company is involved and we show the total cost with social contributions. Newcomer incentives may be available depending on the period. We set expectations clearly so that cash flow planning is simple.
Special Defence Contribution
SDC focuses on passive income such as dividends, interest and certain rent. The non dom framework can remove SDC for dividends and interest for eligible individuals after they become tax resident in Cyprus. The details matter and we confirm them in writing for your case.
Corporate Income Tax
Corporate Income Tax applies to local companies and may be relevant to foreign structures where management and control are present in Cyprus. We review substance, decision making and treaty access. We help with filings and with advance queries where a ruling is sensible.
Value Added Tax
VAT outcomes turn on place of supply rules. For digital services, OSS or IOSS may simplify compliance. We design invoice content and evidence flows so that reconciliations are easier and audits are less disruptive.
Capital Gains Tax
Cyprus CGT normally targets gains from Cyprus immovable property and certain related shares. We check asset location, share composition and holding periods to calculate exposure and to find reliefs where available.
Immigration and tax
Residency routes affect tax outcomes. The 60 day route requires that you are not tax resident elsewhere and that you have ties such as a permanent residence and an employment, a business or a directorship. The 183 day route suits people who live in Cyprus most of the year. We align the route with documentation and timing.
Documents we request
- Travel pattern and day counts for the year.
- Housing and employment or business ties.
- Company minutes and decision records where relevant.
- Invoices and evidence for VAT if you supply services.
- Bank and KYC documents that support the declared position.
How an engagement runs
- Scoping call and document list.
- Options memo with a recommendation and a timeline.
- Execution of registrations and filings. We coordinate with banks and authorities.