Enjoying a central Mediterranean location within easy reach of Europe, The Middle East and Africa, this beautiful island boasts 160 beaches, many of which are rated amongst the best in the World. Add to this 340 days of glorious sunshine and blue skies with average summer temperatures of 30-33 degrees Celsius and winter temperatures of 13-15 degrees Celsius and you will understand why many Ex-pats make Cyprus their home of choice. 

There are also a multitude of things to see and do from skiing in the mountains of Troodos in winter to visiting the quant Cypriot inland villages and monasteries and ancient sites and monuments going back to the occupation of the island by the Mycenaean Greeks in the 2nd millennium BC and subsequently by the empires of the Assyrians, Egyptians and Persians. 

Add to this a very generous tax system and a relatively low cost of living compared to most other European countries and you have the recipe for the perfect place to live and work.

Residency | tax rates

You are considered a resident of Cyprus if you spend a period of 183 days or more in a calendar year in Cyprus.

If you are considered a tax resident in Cyprus, you are subject to tax on your worldwide income. If you are not tax resident in Cyprus, you are subject to tax only on certain types of income accrued or derived from sources in Cyprus

You can also be considered a resident of Cyprus if you:

Tax rates

Cyprus is considered as one of the most attractive regimes, especially when compared to other European countries. As a tax resident of Cyprus, your personal income is taxed according to the following scale:



Up to €19,500

€19,501 – €28,000

€28,001 – €36,300

€36,301 – €60,000







Special Defence Contributions (SDC)

Certain income sources are no longer subject to Personal Income Tax rates in Cyprus and are instead subject to Special Defence Contributions (SDC). Having said that., since 9th July 2015, SDC only applies if you are domiciled in Cyprus. If you are not domiciled in Cyprus, you are exempt from SDC.

You are deemed to be domiciled in Cyprus if you have:

  • A Cyprus domicile of origin*;
  • Acquired a domicile of choice in Cyprus;
  • Been resident in Cyprus for 17 out of the last 20 tax years

*An individual who has a Cyprus domicile of origin but who has acquired a domicile of choice elsewhere, and who has not been resident in Cyprus in any of the previous 20 Cyprus tax years is not considered domiciled for purposes of defence contributions.

If you are liable to SDC, these will apply to the following:

  • 30% on Bank interest;
  • 17% on Dividends;
  • 3% on Rental Income* (after allowing a deduction of 25% on the gross rental income).

*Rental income is also subject to Personal Income Tax Rates.


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