183-Day Rule
The standard tax residency rule used in most countries. If you spend 183 or more days in a country during a calendar year, you become tax resident there. Cyprus also offers the alternative 60-day rule.
Learn more →Cyprus Tax Glossary
Key tax and relocation terms explained for expats and entrepreneurs moving to Cyprus. Updated for 2026.
60-Day Rule
Cyprus tax residency rule allowing individuals to become tax resident with just 60 days of physical presence, provided they maintain a permanent home, have Cyprus-based business, and do not spend 183+ days in any other single country.
Learn more →AML (Anti-Money Laundering)
EU Anti-Money Laundering Directives (AMLD4, AMLD5, AMLD6) implemented in Cyprus. Requires banks, lawyers, and accountants to verify client identities, report suspicious transactions, and maintain records. The Cyprus Unit for Combating Money Laundering (MOKAS) handles suspicious activity reports.
Learn more →Annual Return (HE32)
The annual filing that every Cyprus company must submit to the Registrar of Companies confirming its registered details, directors, shareholders, and share capital. Filed within 28 days of the company's annual general meeting. Failure to file results in penalties and risk of strike-off.
Learn more →Anti-Tax Avoidance Directive (ATAD)
EU directive (ATAD I and II) requiring member states to implement rules against tax avoidance including controlled foreign corporation (CFC) rules, exit tax provisions, and hybrid mismatch rules. Cyprus implemented ATAD rules as required by the EU.
Learn more →Apostille
An official certification confirming the authenticity of a document for use in another country, under the Hague Convention. Cyprus company formation documents often require apostilles to be recognized abroad. The Cyprus Ministry of Justice issues apostilles on notarized documents.
Learn more →Arm's Length Principle
The OECD standard for pricing transactions between related companies. Requires that intercompany prices reflect what unrelated parties would agree in comparable circumstances. Cyprus adopted OECD transfer pricing guidelines, requiring documentation for transactions between related Cyprus entities and foreign affiliates above certain thresholds.
Learn more →Authorized Share Capital
The maximum amount of share capital a Cyprus company is authorized to issue, as stated in its Memorandum of Association. The minimum share capital for a Cyprus Ltd is €1,000. Most companies are incorporated with €1,000 of authorized capital divided into 1,000 shares of €1 each.
Learn more →Banking in Cyprus
The major retail banks in Cyprus are Bank of Cyprus and Hellenic Bank. Both are regulated by the Central Bank of Cyprus and the European Central Bank (SSM). Opening a personal account requires Yellow Slip, passport, and proof of income. Corporate accounts require company documents and a business plan, and take 4-8 weeks.
Learn more →Benefit in Kind (BIK)
Non-cash benefits provided by an employer to an employee or director, such as a company car, private health insurance, or accommodation. In Cyprus, BIKs are generally included in the employee's taxable income and subject to income tax. Company cars used privately are a common BIK.
Learn more →BEPS (Base Erosion and Profit Shifting)
The OECD project to address tax avoidance strategies that exploit gaps in international tax rules. Cyprus has implemented BEPS-related measures including transfer pricing rules, CFC provisions (ATAD), country-by-country reporting (CbCR) for large groups, and the Principal Purpose Test in its tax treaties via the MLI.
Learn more →Bulgaria Flat Tax
Bulgaria has a flat 10% corporate tax and a flat 5% dividend withholding tax, for a combined effective rate of approximately 14.5% on profits distributed as dividends. Lowest effective rate in the EU for straightforward dividend extraction after Malta's complex refund mechanism. Bulgaria is an EU member with SEPA banking.
Learn more →Capital Allowances
Tax deductions for the depreciation of business assets in Cyprus. Rates include: plant and machinery 10%, furniture and fittings 10%, computer hardware 33.3%, motor vehicles 20%, industrial buildings 4%. Assets are written down on a straight-line basis. No balancing allowances on disposal.
Learn more →Capital Gains Tax (CGT)
Cyprus does not impose capital gains tax on profits from the sale of shares, securities, or most financial assets. A 20% CGT applies only to profits from the disposal of immovable property located in Cyprus.
Learn more →Centre of Vital Interests
The OECD tiebreaker rule for tax residency disputes between two countries. Applied when an individual has a permanent home in both countries. The centre of vital interests is the country with the closest personal and economic ties: family, employment, social activities, bank accounts, and property.
Learn more →Common Reporting Standard (CRS)
An OECD framework for the automatic exchange of financial account information between tax authorities worldwide. Cyprus participates fully, meaning bank accounts and investments are reported to your country of tax residency.
Learn more →Company Secretary
A mandatory officer of every Cyprus company responsible for maintaining statutory records, filing returns with the Registrar, and ensuring compliance with the Companies Law (Cap.113). The company secretary can be an individual or a corporate entity based in Cyprus.
Learn more →Controlled Foreign Corporation (CFC)
Under EU Anti-Tax Avoidance Directive (ATAD) rules implemented in Cyprus, if a Cyprus resident controls a foreign company paying low taxes, profits of that foreign company may be attributed to the Cyprus resident. Applies to subsidiaries in low-tax jurisdictions with passive income. Cyprus implemented these rules from 2019.
Learn more →Country-by-Country Reporting (CbCR)
A requirement for multinational groups with annual consolidated revenue exceeding €750 million to file a report with tax authorities detailing revenue, profits, taxes paid, and employee numbers in each country of operation. Cyprus-headquartered groups meeting the threshold must file annually.
Learn more →Crypto Tax in Cyprus
Cyprus does not impose capital gains tax on profits from cryptocurrency trading. Crypto gains may be treated as business income (subject to 15% corporate tax) if trading is systematic. Non-Dom residents owe only 2.65% GHS on crypto dividends distributed from a Cyprus company.
Learn more →Cyprus Company Formation
The process of registering a Private Limited Company (Ltd) in Cyprus. Formation costs approximately 2,100 EUR with annual maintenance of 3,000 EUR. Companies pay 15% corporate tax on net profits.
Learn more →Cyprus Corporate Tax
The standard corporate income tax rate in Cyprus is 15% on net profits. Combined with the Non-Dom regime for shareholders, the effective total tax rate on business income distributed as dividends is approximately 5%.
Learn more →Cyprus Dividend Tax
For Non-Dom residents, dividends are exempt from income tax and SDC, with only 2.65% GHS contribution. For domiciled residents, dividends are subject to 5% SDC plus 2.65% GHS from 2026.
Learn more →Cyprus Tax Identification Number (TIN)
A unique number issued by the Cyprus Tax Department to individuals and companies for tax purposes. Required for filing tax returns, opening corporate bank accounts, and all official tax communications.
Learn more →Cyprus Tax Rates
Key Cyprus tax rates for 2026: 15% corporate tax, 0-35% personal income tax (first 22,000 EUR exempt), 2.65% GHS on most income, 0% dividend tax for Non-Dom (plus 5% SDC for domiciled residents), 0% capital gains on shares, 19% VAT.
Learn more →DAC6 (Mandatory Disclosure Rules)
EU Directive on Administrative Cooperation requiring tax advisors, lawyers, and financial institutions to report certain cross-border tax arrangements to tax authorities. Cyprus implemented DAC6, meaning certain arrangements involving Cyprus must be disclosed to the Cyprus Tax Department and shared with EU partner states.
Learn more →Deemed Distribution
A Cyprus tax mechanism under which undistributed company profits are deemed to have been distributed as dividends after two years if not actually declared. SDC is levied on the deemed amount for domiciled shareholders. Non-Dom shareholders are exempt from SDC even on deemed distributions.
Learn more →Deemed Domicile
A person becomes deemed domiciled in Cyprus after 17 consecutive years as a Cyprus tax resident, even if not born there. At that point, full SDC rates apply on dividends, interest, and rental income. Requires proactive planning before the 17-year period expires.
Learn more →Digital Nomad Visa
Cyprus does not have a specific digital nomad visa. EU/EEA nationals register via the Yellow Slip (MEU1). Non-EU nationals who work remotely for foreign employers can apply for a Category F immigration permit (financial independence route), which requires demonstrating sufficient income from abroad.
Learn more →Director's Fees
Remuneration paid to company directors for their services as directors. In Cyprus, director's fees are treated as employment income and subject to the progressive income tax rates and social insurance contributions. They are deductible business expenses at the company level.
Learn more →Dividend Stripping
A strategy of timing dividend distributions to align with Non-Dom status to eliminate SDC liability. In Cyprus, dividends declared after Non-Dom registration are fully exempt from SDC, making the timing of distributions a key planning consideration.
Learn more →Domicile (Tax)
In Cyprus tax law, domicile determines whether an individual is subject to SDC on passive income. An individual is considered domiciled in Cyprus if they were born there or spent 17 of the last 20 years as a Cyprus tax resident. Those without Cyprus domicile qualify as Non-Dom.
Learn more →Double Taxation Agreement (DTA)
Bilateral treaty between two countries to prevent the same income from being taxed twice. Cyprus has signed over 65 DTAs with countries including the UK, Germany, France, Spain, and Russia.
Learn more →Economic Nexus
The business connection required for the Cyprus 60-day residency rule. An individual must have a Cyprus-based economic nexus: directorship, employment, or business ownership in a Cyprus entity. A shell company with no real activity does not satisfy this requirement.
Learn more →Effective Tax Rate
The actual percentage of income paid in total taxes, accounting for all applicable taxes including corporate tax, dividend tax, and social contributions. For a Cyprus Non-Dom entrepreneur: approximately 5% on business profits distributed as dividends (15% corporate + 2.65% GHS, no SDC).
Learn more →Estonia E-Residency
Estonia's digital residency program allowing non-residents to establish and manage an EU company online. Estonian companies pay 0% corporate tax on retained profits, 20% only when profits are distributed. Popular with digital entrepreneurs, but requires careful substance analysis: Estonian e-residency alone does not create Estonian tax residency.
Learn more →EU Blacklist / Greylist
The EU list of non-cooperative jurisdictions for tax purposes. Cyprus is not on the EU blacklist or greylist. Jurisdictions on the blacklist face sanctions. Cyprus's compliance with CRS, ATAD, and OECD standards means it maintains full EU standing.
Learn more →Exit Tax
A tax charged by some countries when a tax resident moves abroad. Spain charges exit tax on unrealized capital gains exceeding 4 million EUR. Cyprus does not charge exit tax on departure.
Learn more →FATCA
The US Foreign Account Tax Compliance Act requires financial institutions worldwide to report accounts held by US persons to the IRS. Cyprus banks report US-citizen account holders under the FATCA Intergovernmental Agreement with the USA. US citizens in Cyprus remain subject to US worldwide income tax regardless of where they live.
Learn more →FBAR (FinCEN 114)
The US Report of Foreign Bank and Financial Accounts, required annually from US persons who have aggregate foreign financial account balances exceeding $10,000 at any point during the year. US citizens living in Cyprus must file FBAR for their Cyprus bank accounts and must report Cyprus company interests.
Learn more →Foreign Pension Income
Cyprus offers two options for taxing foreign pension income: (1) include it in general income and pay at progressive rates (0-35%) with the standard €22,000 exemption (from 2026), or (2) elect a flat 5% rate on foreign pension income exceeding €3,420 per year. The flat rate option is elected annually.
Learn more →Foreign Tax Credit
A credit available in Cyprus against tax already paid abroad on the same income. Prevents double taxation on income taxed both at source and in Cyprus. Available unilaterally (without a treaty) and enhanced under specific DTA provisions. Limited to the Cyprus tax that would apply to the foreign income.
Learn more →GESY (General Healthcare System)
The Cypriot public healthcare system (Geniko Systima Ygeias), funded by contributions from employees, employers, and self-employed individuals. Cyprus residents and Non-Doms contribute 2.65% on various income types capped at 180,000 EUR.
Learn more →GHS Healthcare Contribution
The General Healthcare System contribution in Cyprus, charged at 2.65% on dividends, interest, salary, and other income. Applies to all residents including Non-Doms. Capped at 180,000 EUR of income.
Learn more →GHS Income Cap
The maximum annual income subject to GHS (General Healthcare System) contributions is €180,000. At 2.65%, the maximum GHS payable from any single income source in a year is €4,770. This cap applies to all income types combined - salary, dividends, interest, and rental income.
Learn more →Good Standing Certificate
A document issued by the Cyprus Registrar of Companies confirming that a company is active and has filed all required returns. Banks, foreign counterparties, and authorities frequently request this certificate. Valid for a limited period (typically 3-6 months).
Learn more →Group Relief
A Cyprus tax provision allowing losses of one group company to be surrendered to and offset against the profits of another group company. Requires 75% common ownership. Companies must be Cyprus tax residents for the relief to apply.
Learn more →Holding Company
A Cyprus holding company benefits from participation exemption on dividends received from EU subsidiaries, 0% withholding tax on outbound dividends, and 0% capital gains on share disposals. Setup costs are approximately 1,500-3,000 EUR.
Learn more →Immigration Permit (Cyprus)
The residence permit issued to non-EU nationals wishing to live in Cyprus. Categories include: Category F (independent financial means), employment permit, intra-company transfer, self-employment, and startup visa. Non-EU spouses of EU citizens can obtain a residence card based on the EU citizen's Yellow Slip.
Learn more →Immovable Property Tax
Cyprus abolished the annual Immovable Property Tax in 2017. There is no longer any recurring tax on owning property in Cyprus. Transfer fees and stamp duty apply on acquisition, and municipal fees (refuse collection etc.) apply, but no ongoing ownership tax.
Learn more →Income Tax Bands (Cyprus)
Cyprus personal income tax rates for 2026: 0% on income up to €22,000; 20% on €22,001-€32,000; 25% on €32,001-€42,000; 30% on €42,001-€72,000; 35% on income above €72,000. Non-Dom status does not affect income tax on employment income - only SDC on passive income.
Learn more →Inheritance Tax
Cyprus abolished inheritance tax in 2000. There is no estate duty, inheritance tax, or gift tax in Cyprus, making it highly attractive for wealth transfer planning.
Learn more →IP Box Regime
Cyprus tax incentive that reduces the effective corporate tax rate to approximately 3% on profits derived from qualifying intellectual property, including patents and software.
Learn more →IR4 Corporate Tax Return
The annual corporate income tax return (Form IR4) filed by Cyprus companies by March 31 of the year following the tax year. Reports company revenue, allowable deductions, taxable profit, and corporate tax due. Filed via TAXISnet. Accompanied by audited financial statements.
Learn more →KYC (Know Your Customer)
The due diligence process required by Cyprus banks, law firms, and accountants before establishing a business relationship. Requires proof of identity (passport), proof of address, source of funds documentation, and business activity description. Cyprus has strengthened KYC requirements since EU AML directives.
Learn more →Larnaca
Cyprus's main international airport hub and a growing expat destination known for affordability. One-bedroom apartments from €500-800/month. More relaxed pace than Limassol. Preferred by the 60-day rule users as a permanent home base due to lower costs and direct international flight connections.
Learn more →Limassol
Cyprus's financial and business capital, home to the majority of international companies, law firms, and accounting offices. Largest expat community in Cyprus. Higher cost of living than other cities: one-bedroom apartments €800-1,400/month. Strong Russian and Israeli expat presence historically.
Learn more →Loss Carryforward
Cyprus allows companies to carry forward tax losses indefinitely to offset against future taxable profits. There is no time limit on loss utilization, unlike many other jurisdictions. Group relief also permits horizontal transfer of losses within qualifying groups.
Learn more →Malta 6/7 Refund
Malta's corporate tax system charges 35% corporate tax upfront. Shareholders who are non-Malta resident can claim back 6/7 of the tax paid (reducing effective rate to approximately 5%). The refund takes 4-14 weeks to receive, creating a cash flow disadvantage compared to Cyprus's direct 15% rate.
Learn more →Management and Control
The test used to determine the tax residency of a Cyprus company. A company is considered Cyprus tax resident if its management and control is exercised in Cyprus. This requires the majority of board decisions to be made in Cyprus, with directors physically present in Cyprus for key meetings.
Learn more →Memorandum and Articles of Association (M&AA)
The constitutional documents of a Cyprus private limited company, filed with the Registrar of Companies on incorporation. The Memorandum defines the company's objects and authorized capital. The Articles govern internal management, shareholder rights, and director powers.
Learn more →MEP1 (Pink Slip for Non-EU)
The Alien Registration Certificate issued to non-EU/EEA nationals residing in Cyprus. Equivalent to the Yellow Slip (MEU1) for EU citizens. Required for banking, tax registration, and other official purposes. Issued by the Civil Registry and Migration Department.
Learn more →MEU1 Registration Certificate
Official name for the Yellow Slip issued to EU/EEA citizens registering their residence in Cyprus. Processed by the Civil Registry and Migration Department, typically issued within 1-2 weeks.
Learn more →Multilateral Instrument (MLI)
The OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS. Cyprus signed the MLI, which modifies its existing double tax treaties to include anti-abuse provisions such as the Principal Purpose Test. Modified treaties incorporate stricter rules on treaty shopping.
Learn more →NHR (Non-Habitual Resident) - Portugal
Portugal's former preferential tax regime offering flat 20% income tax for 10 years and exemptions on foreign-source income. Abolished in January 2024 for new applicants. Replaced by IFICI (incentivo fiscal à investigação científica e inovação) covering limited professions. The abolition drove significant interest in Cyprus as an alternative.
Learn more →Nicosia
The capital of Cyprus and the last divided capital in Europe. Home to government ministries, the central bank, and many professional services firms. Landlocked with no beach access. Lower rental costs than Limassol. Popular among those working in the public sector or government-adjacent industries.
Learn more →Non-Dom Status
Non-Domiciled status in Cyprus exempts qualifying residents from Special Defence Contribution (SDC) on dividends, interest, and rental income for up to 17 years. Foreigners qualify automatically if they were not born in Cyprus.
Learn more →Notional Interest Deduction (NID)
A Cyprus tax incentive allowing companies to deduct a notional interest on new equity capital from taxable income. This can reduce the effective corporate tax rate below the standard 15%.
Learn more →OECD Pillar Two
The OECD global minimum tax initiative requiring large multinational groups with revenues above €750 million to pay at least 15% effective tax in every jurisdiction where they operate. Cyprus implemented Pillar Two rules effective January 2024. Does not affect small and medium-sized businesses.
Learn more →Participation Exemption
A Cyprus tax rule that exempts dividends received from qualifying subsidiaries from corporate tax at the holding company level. Applies to dividends from EU and most non-EU subsidiaries, enabling tax-efficient group structures.
Learn more →PAYE (Pay As You Earn)
The Cyprus employer payroll withholding system under which employers deduct income tax and social insurance contributions from employee salaries each month and remit them to the Tax Department. Cyprus PAYE returns are filed monthly by the end of the following month.
Learn more →Permanent Establishment (PE)
A fixed place of business through which a foreign company operates in a country. Having a PE in a country can trigger corporate tax obligations there, even if the company is registered elsewhere.
Learn more →Permanent Home
A key concept in double tax treaty tiebreaker rules. A permanent home is a dwelling place available to the individual at all times, not just occasionally. Under the 60-day rule in Cyprus, maintaining a permanent home (owned or rented on a full-year lease) in Cyprus is a mandatory condition.
Learn more →Personal Income Tax Allowance
The first €22,000 of annual employment income in Cyprus is exempt from income tax from 1 January 2026 (raised from €19,500 by the 2026 tax reform). This applies to salaries, director's fees, and employment income from Cyprus and foreign sources. Non-Dom entrepreneurs typically set their salary at or below this threshold to eliminate income tax on employment income.
Learn more →Pink Slip (ARC)
The Alien Registration Certificate (ARC) issued to non-EU citizens residing in Cyprus. The equivalent of the Yellow Slip for nationals from outside the EU/EEA, required for banking, tax registration, and official matters.
Learn more →Place of Effective Management (POEM)
The OECD concept for determining where a company is managed in substance. Cyprus Tax Department requires that the board of directors, CFO, and key management activities operate from Cyprus. A company with a POEM outside Cyprus may lose its Cyprus tax residency status.
Learn more →Pre-Residence Capital Gains
Gains that accrued before an individual became a Cyprus tax resident. Cyprus does not tax capital gains on securities regardless of when they accrued, making Cyprus a neutral entry point for investors with large unrealized gains in a share portfolio.
Learn more →Principal Purpose Test (PPT)
An anti-avoidance rule in modern double tax treaties and the OECD MLI. Treaty benefits are denied if obtaining that benefit was one of the principal purposes of the arrangement. Cyprus's modified treaties include PPT, meaning arrangements structured primarily to claim treaty benefits may be challenged.
Learn more →Property Transfer Fee
A fee paid to the Cyprus Land Registry when transferring immovable property. Calculated as 3% on market value up to €85,000, 5% on €85,001-€170,000, and 8% above €170,000. Currently reduced to 0% for newly built properties subject to VAT, to avoid double taxation.
Learn more →Property Transfer Tax
A tax paid to the Land Registry when purchasing immovable property in Cyprus. Rates range from 3% to 8% of the property market value. Currently reduced to 0% for VAT-eligible new properties to avoid double taxation.
Learn more →Provisional Tax
Advance payments of corporate income tax made in two instalments: 31 July and 31 December of the current tax year. Companies estimate their taxable income and pay 80% in advance. Any shortfall exceeding 25% of the final tax is subject to a 10% surcharge.
Learn more →R&D Deduction
Cyprus allows a 20% uplift deduction on qualifying research and development expenditure, in addition to the standard 100% deduction. Combined with the IP Box regime, Cyprus provides a highly efficient structure for technology companies with significant IP.
Learn more →Registered Office
Every Cyprus company must have a registered office address in Cyprus where official correspondence and legal notices are delivered. This is typically provided by the company's service agent or law firm at an annual cost of approximately €400-800.
Learn more →Rental Income Tax (Cyprus)
Rental income from Cyprus property is subject to income tax at progressive rates (0-35%) after a 20% allowable deduction for building maintenance. For Non-Dom residents, foreign rental income is exempt from SDC. Local rental income is not exempt from SDC for domiciled residents.
Learn more →Retiring in Cyprus
Cyprus offers a flat 5% personal income tax rate on foreign pension income for non-domiciled retirees, with a minimum threshold of 3,420 EUR per year. Combined with 0% inheritance tax and low cost of living, it is a leading European retirement destination.
Learn more →Reverse Charge (VAT)
A VAT mechanism where the recipient of a service accounts for VAT rather than the supplier. In Cyprus, B2B services received from EU suppliers are subject to reverse charge: the Cyprus company reports the VAT but can immediately reclaim it, making it a cash-neutral transaction.
Learn more →Salary Exemption
Cyprus income tax exemption on the first 22,000 EUR of annual salary (from 1 January 2026, raised from 19,500 EUR). Non-Dom entrepreneurs often set their salary at or below this threshold to minimize personal income tax, taking remaining profits as dividends.
Learn more →SEPA Banking
The Single Euro Payments Area, covering 36 European countries including all EU members and several non-EU states. Cyprus banks operate within SEPA, meaning euro transfers to and from Cyprus are processed at the same cost and speed as domestic transfers within the EU. An advantage Cyprus has over Dubai and Singapore.
Learn more →Social Insurance Ceiling
Cyprus social insurance contributions apply only up to an annual earnings ceiling. The ceiling is updated periodically. For 2026, the insurable earnings ceiling for social insurance purposes is approximately €66,612 per year. Earnings above this ceiling are not subject to social insurance contributions.
Learn more →Social Insurance Contribution
Cyprus mandatory contributions for employed and self-employed individuals: 8.8% employee, 8.8% employer on gross salary (up to a ceiling). Self-employed pay a combined contribution on deemed income. Separate from GHS contributions.
Learn more →Source Country vs Residence Country
Tax treaty terminology for the two countries involved in a cross-border income payment. The source country is where the income originates. The residence country is where the recipient lives and is taxed. Double tax treaties allocate taxing rights between these two countries for specific income types.
Learn more →Special Defence Contribution (SDC)
A Cyprus tax on passive income: 5% on dividends (from 2026), 30% on interest, and 3% on rental income for domiciled residents. Non-Dom residents are fully exempt from SDC.
Learn more →Stamp Duty
A Cyprus tax on commercial contracts and documents. Charged at 0.15% on contract values up to 170,860 EUR and 0.2% above that amount, capped at 20,000 EUR per document. Applies to Cyprus-executed contracts only.
Learn more →Startup Visa (Cyprus)
A Cyprus immigration category for non-EU founders of innovative startups. Requires a validated business plan, minimum investment, and a local presence in Cyprus. The scheme is administered by the Deputy Ministry of Research, Innovation and Digital Policy and targets technology entrepreneurs.
Learn more →Substance Requirements
The obligation for a Cyprus company to demonstrate genuine economic activity in Cyprus: local directors making real management decisions, a local bank account, and employees or contractors based in Cyprus. Required to avoid being reclassified as a shell company.
Learn more →Tax Clearance Certificate
A document issued by the Cyprus Tax Department confirming that an individual or company has no outstanding tax obligations. Required for certain transactions including company dissolution, property transfers, and some banking operations.
Learn more →Tax Filing Calendar (Cyprus)
Key Cyprus tax deadlines: corporate tax return (IR4): March 31; personal income tax (TD1): July 31; provisional corporate tax, 1st instalment: July 31; provisional tax, 2nd instalment: December 31; annual company levy: June 30; VAT returns: monthly/quarterly depending on registration category.
Learn more →Tax Haven vs Low-Tax Jurisdiction
A tax haven has zero or near-zero taxes with no substance requirements, no transparency, and no information exchange (e.g. Cayman Islands, BVI). A low-tax jurisdiction, like Cyprus, has competitive but non-zero taxes (15% corporate), full EU compliance, CRS participation, and requires genuine economic substance.
Learn more →Tax Residency
The status that determines where an individual pays taxes. In Cyprus, tax residency can be established via the 183-day standard rule or the 60-day rule. Tax residents pay tax on worldwide income.
Learn more →Tax Residency Certificate (TRC)
An official document issued by the Cyprus Tax Department confirming that an individual or company is a Cyprus tax resident. Required to claim benefits under double tax treaties and to prove non-residency to foreign tax authorities. Issued annually via TAXISnet.
Learn more →Tax Treaty Network
Cyprus has signed Double Taxation Agreements with over 65 countries, one of the most extensive networks in the EU relative to its size. These treaties determine which country has taxing rights on specific income types for residents moving to or from Cyprus.
Learn more →TAXISnet
The official online portal of the Cyprus Tax Department (taxisnet.mof.gov.cy), used to file tax returns, pay taxes, register for VAT, and manage all tax obligations in Cyprus.
Learn more →TD1 Form
The personal income tax return form used in Cyprus (Tax Declaration Form 1). Filed annually by Cyprus tax residents by 31 July of the following year via the TAXISnet portal.
Learn more →TD1 Personal Tax Return
The annual personal income tax return (Form TD1) filed by Cyprus tax residents by July 31 via TAXISnet. Reports worldwide income including salary, dividends, rental income, and other sources. Non-Doms must file even if they owe zero income tax on dividends.
Learn more →Tonnage Tax
A specialized tax regime for shipping companies in Cyprus, taxing ships based on their net tonnage rather than profits. One of the oldest and most favorable shipping tax regimes globally. Cyprus-registered shipping companies effectively pay close to zero income tax on shipping income under this regime.
Learn more →Transfer Pricing
Rules governing the pricing of transactions between related parties in different countries. Cyprus adopted OECD transfer pricing guidelines, requiring arm's length pricing for intercompany transactions to prevent profit shifting.
Learn more →Treaty Shopping
Using a country's double tax treaty network to claim benefits on income that has no real connection to that country. For example, routing payments through a Cyprus entity solely to benefit from Cyprus's 0% withholding tax on outbound dividends. Cyprus MLI provisions and substance requirements are designed to prevent abusive treaty shopping.
Learn more →UAE Corporate Tax (2023)
The UAE introduced a 9% corporate income tax on business profits exceeding AED 375,000 (approximately €95,000) effective June 2023. Free zone companies retain preferential treatment on qualifying income but face 9% on mainland UAE-sourced revenue. Ended the "zero tax in Dubai" narrative that dominated entrepreneur discourse.
Learn more →UK Non-Dom Abolition (2025)
The United Kingdom abolished its Non-Domiciled tax regime effective April 6, 2025. UK Non-Doms previously enjoyed exemption from UK tax on foreign income and gains for up to 15 years. The abolition moved many UK-based Non-Doms to consider alternative jurisdictions including Cyprus.
Learn more →Ultimate Beneficial Owner (UBO)
The natural person who ultimately owns or controls a Cyprus company, holding more than 25% of shares or voting rights. Cyprus requires UBOs to be registered in the Beneficial Ownership Register maintained by the Registrar of Companies, accessible to competent authorities and the public in certain circumstances.
Learn more →Unilateral Tax Relief
Cyprus grants a credit for foreign taxes paid on income that is also taxable in Cyprus, even in the absence of a double tax treaty. The credit is limited to the lower of the foreign tax paid and the Cyprus tax that would apply to the same income. Prevents double taxation even without a formal DTA.
Learn more →VAT in Cyprus
Value Added Tax in Cyprus is charged at a standard rate of 19%. Reduced rates of 9% and 5% apply to certain goods and services. VAT registration is mandatory for businesses with turnover exceeding 15,600 EUR.
Learn more →VAT Registration Threshold
Cyprus businesses must register for VAT when annual taxable turnover exceeds €15,600. Once registered, they charge 19% VAT on supplies and can reclaim VAT on business purchases. Voluntary registration is possible below the threshold. EU cross-border B2C sales are subject to OSS (One Stop Shop) rules.
Learn more →Wealth Tax
An annual tax on net assets or net wealth. Cyprus does not have a wealth tax. Notable jurisdictions that do: Spain (0.2-3.5%), Norway (0.85-1%), and Switzerland (cantonal, typically 0.15-0.5%). The absence of a wealth tax makes Cyprus attractive for high-net-worth individuals.
Learn more →Withholding Tax (WHT)
Cyprus charges 0% withholding tax on dividends paid to non-resident shareholders, regardless of the tax treaty. Interest and royalty payments to non-residents may attract WHT under specific circumstances.
Learn more →Worldwide Income Taxation
Cyprus taxes its tax residents on worldwide income regardless of source. However, the Non-Dom regime eliminates SDC (and effectively all meaningful personal tax) on passive income such as dividends and interest from foreign sources. Employment income from abroad remains taxable at progressive rates.
Learn more →Yellow Slip
The MEU1 registration certificate for EU citizens exercising their right to reside in Cyprus. Required for banking, tax registration, and other official purposes. Issued by the Civil Registry and Migration Department.
Learn more →About this glossary
This glossary covers the most important tax and relocation terms for anyone considering a move to Cyprus. Each definition is written from the perspective of an expat or entrepreneur using the Non-Dom regime, the 60-day rule, or company formation to optimize their tax structure legally within the EU framework.