Country topic
Tax in Cyprus
A private firm’s April 2026 summary says physical presence in Cyprus for more than 183 days in a tax year (1 January to 31 December) makes you tax resident. The day you arrive counts as a day in Cyprus and the day you leave as a day outside; arriving and leaving on the same day counts as a day in Cyprus. Staying under 183 days makes you non-resident for that year. [T1] The same summary describes a 60-day route: you are resident if you spend at least 60 days in Cyprus, do not spend more than 183 days in any other country, exercise a business or are employed in Cyprus or hold an office with a Cypriot tax-resident company at some point in the year, and keep a permanent home there by owning or leasing. All conditions must be met together. [T1]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- A private firm’s April 2026 summary says physical presence in Cyprus for more than 183 days in a tax year (1 January to 31 December) makes you tax resident. The day you arrive counts as a day in Cyprus and the day you leave as a day outside; arriving and leaving on the same day counts as a day in Cyprus. Staying under 183 days makes you non-resident for that year. [T1]
- The same summary describes a 60-day route: you are resident if you spend at least 60 days in Cyprus, do not spend more than 183 days in any other country, exercise a business or are employed in Cyprus or hold an office with a Cypriot tax-resident company at some point in the year, and keep a permanent home there by owning or leasing. All conditions must be met together. [T1]
- The Migration Department says digital nomad permit holders who stay in Cyprus more than 183 days in the same tax year are tax residents of Cyprus, provided they are not tax residents of another country. Fernshore has not checked how another country’s tax rules apply to the same person. [T2]
- For 2026 the private firm lists these income tax rates on chargeable income: 0% up to €22,000, 20% from €22,001 to €32,000, 25% to €42,000, 30% to €72,000 and 35% above €72,000. It lists many deductions, including social insurance and health contributions. We did not price social charges for any particular case. [T1]
- Residents who are non-domiciled are exempt from the special defence contribution (SDC) on dividends and interest, and from 1 January 2026 rental income is not subject to SDC; domiciled residents pay SDC on dividends and interest. You are deemed domiciled after 17 of the previous 20 years as a Cyprus tax resident. Whether you count as non-domiciled depends on domicile law; ask an adviser. [T1]
- The private firm says overseas pensions are exempt from tax up to €5,000 and taxed at 5% above that. You may choose to be taxed in the normal way instead where that gives a lower bill, and the choice can be made year by year. [T1]
- The firm lists no inheritance, gift, wealth or immovable property taxes. Capital gains tax applies to the sale of immovable property in Cyprus and to shares in companies that mainly hold it; selling property outside Cyprus is exempt. It also lists a 100% exemption on pay for salaried services performed outside Cyprus for more than 90 days in a tax year for a non-Cypriot employer; whether it covers remote work done from Cyprus is not stated. [T1]
- The firm says foreign nationals owe Cyprus social insurance if they physically work in Cyprus: 8.8% for the employee and 8.8% for the employer in 2026, capped at monthly earnings of €5,742, plus employer funds of 1.2%, 0.5% and 2%. EU, EEA and Swiss workers can stay in their home system with an A1 certificate. We did not check social security agreements for US, Canadian, Australian or New Zealand passports, so those are unknown. [T1]
- US citizens abroad generally file as they would at home, on worldwide income. The IRS lists an income tax treaty with Cyprus of 1984. The 2026 foreign earned income exclusion limit is $132,900 per person; its physical presence test needs 330 full days in a foreign country in any 12 consecutive months. Foreign accounts totalling more than $10,000 at any time in the year are reportable on an FBAR. [T3] [T7] [T4] [T5] [T6]
- For Australians, Treasury’s list of Australia’s income tax treaties, last updated 24 March 2026, has no entry for Cyprus. New Zealand Inland Revenue’s list of agreements in force does not include Cyprus either. We could not open an official Canadian treaty list, so whether a Canada–Cyprus treaty exists is unknown here, as are the rules that end Canadian, Australian or New Zealand tax residence when you move. [T8] [T9]
The country
More on Cyprus.
Topics
More about Cyprus.
Questions about Tax in Cyprus.
When do I become a tax resident of Cyprus?
A private firm says more than 183 days in Cyprus in a tax year (1 January to 31 December) makes you resident. A 60-day route needs a permanent home, work or a business there and no more than 183 days elsewhere. The Migration Department says nomad permit holders over 183 days are resident.
What are Cyprus’s income tax rates?
A private firm lists 2026 rates on chargeable income of 0% up to €22,000, 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above. Deductions such as social insurance apply. We did not price social charges or anything for a given person, so ask an adviser.
Is dividend and interest income taxed in Cyprus?
The private firm says residents who are non-domiciled are exempt from the special defence contribution on dividends and interest, and domiciled residents pay it. You are deemed domiciled after 17 of the previous 20 years as a Cyprus tax resident. Which applies to you depends on domicile law.
How is a foreign pension taxed in Cyprus?
The private firm says overseas pensions are exempt up to €5,000 and taxed at 5% above that. You can choose to be taxed in the normal way where that gives a lower bill, year by year. This is a summary, not advice; ask an adviser about your own pension.
Is there a tax treaty between Cyprus and my country?
The IRS lists a 1984 income tax treaty with Cyprus, but US citizens still file US returns on worldwide income. Treasury’s list for Australia and Inland Revenue’s list for New Zealand show no treaty with Cyprus. Canada is not checked here, so it is unknown.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] Cyprus Tax Residency and Non-Dom rules (April 2026), KPMG Limited, Cyprus (private firm brochure, not an official site). Checked 15 October 2026. A private firm's summary of the law as of April 2026; the Cyprus Tax Department's own site could not be opened.
- [T2] Digital nomads and family members (Cyprus Digital Nomad Visa), Migration Department, Deputy Ministry of Migration and International Protection (gov.cy). Checked 15 October 2026. Read from the Internet Archive copy of 26 September 2026; the live page refuses automated access.
- [T3] US citizens abroad: filing requirements, Internal Revenue Service. Checked 15 October 2026.
- [T7] Cyprus - Tax treaty documents, Internal Revenue Service. Checked 15 October 2026. Lists an income tax treaty of 1984 and its 1984 technical explanation (page updated 13 August 2026).
- [T4] Foreign earned income exclusion, Internal Revenue Service. Checked 15 October 2026. Maximum exclusion for tax year 2026 is $132,900 per person.
- [T5] Physical presence test, Internal Revenue Service. Checked 15 October 2026. 330 full days in a foreign country in any 12 consecutive months.
- [T6] Report of Foreign Bank and Financial Accounts (FBAR), Financial Crimes Enforcement Network (FinCEN). Checked 15 October 2026.
- [T8] Income tax treaties (list of Australia's treaties), Australian Government, Treasury. Checked 15 October 2026. Page last updated 24 March 2026; Cyprus does not appear in the list.
- [T9] Tax treaties: double tax agreements in force, New Zealand Inland Revenue (Tax Policy). Checked 15 October 2026. The list of agreements in force does not include Cyprus.