Cyprus: company, residency and banking
CyprusEurope- Personal income tax from 2026
- 0% up to EUR 22,000; 20% / 25% / 30%; 35% above EUR 72,000
- As of 2026-10-25 · [3]
- Non-dom exemption on dividends and interest
- Until deemed domicile after 17 of 20 years
- As of 2026-10-25 · [1]
- Dividend withholding to non-residents
- 0%, with exceptions for EU-listed and low-tax jurisdictions
- As of 2026-10-25 · [6]
Overview
Cyprus works best when the owners are EU nationals, the business model is one that banks examine closely (fintech-adjacent, trading, online platforms, international services) and stable EU banking matters more than the lowest possible tax rate. A Cyprus company is an EU company, and counterparties and payment providers treat it that way.
The 2026 tax reform raised corporate income tax from 12.5% to 15% and widened the personal tax-free band to EUR 22,000. Companies incorporated in Cyprus are now tax resident by default, which simplifies the residency question for most new companies.
For individuals the attraction is the non-domicile position: tax residents who are not domiciled in Cyprus pay no special defence contribution on dividends and interest. Combined with the 60-day rule, founders can become Cyprus tax resident without spending half the year on the island, provided they meet every condition.
Redomiciled coordinates company, relocation and banking steps with licensed Cypriot lawyers and accountants, who give the legal and tax advice.
Cyprus company formation for EU-focused businesses
A Cyprus limited company is an EU-resident company used by founders who need dependable European banking and payment access for activities that banks review closely. As of 2026 it pays 15% corporate tax on profits, and dividends paid to non-resident shareholders generally carry no Cyprus withholding tax.
The typical structure is simple: the company earns the profits, the founder draws a market-level salary that is deductible for the company and taxed under the normal personal bands, and what remains after 15% corporate tax is distributed as dividends.
For a non-domiciled Cypriot tax resident, those dividends carry no special defence contribution. For a shareholder living elsewhere, Cyprus generally levies no withholding tax on dividends, except on payments to companies in EU-listed non-cooperative jurisdictions and, from 2026, to related companies in low-tax jurisdictions.
Cyprus also works as a holding location inside the EU: dividends received are generally exempt from corporate tax, outgoing dividends to most non-residents carry no withholding, and the treaty network is broad. Substance is the condition: local directors, real decision-making and proper bookkeeping.
Non-EU owners can use Cyprus too, but banks usually expect resident directors, and living on the island requires a residence permit rather than simple registration.
Licensed Cypriot accountants and lawyers provide the tax and legal advice; we coordinate formation and introductions.
Who it suits
EU founders with banking-sensitive models
Crypto-adjacent, trading, fintech-adjacent, platform or international service businesses that need EU banking.
Founders relocating to Cyprus
You will live in Cyprus, act as director and pay yourself a salary.
EU holding companies
You want an EU holding company with exempt dividend income and treaty access.
Groups needing an EU contracting entity
Your counterparties or payment providers require a company incorporated in the EU.
Requirements
- Required
Registered office in Cyprus
The statutory address of the company.
- Required
At least one director
Banks expect directors who genuinely manage the company, ideally resident in Cyprus.
- Required
Shareholder and beneficial owner details
Recorded with the Registrar and the beneficial ownership register; anonymous ownership is not available.
- Required
Audited annual accounts and tax return
Cyprus companies file audited financial statements every year.
- Depends on your case
Resident director for non-EU owners
Often needed where the owner does not relocate, so banks see local management.
- Depends on your case
Owner relocation
Moving to Cyprus strengthens substance and opens the personal non-dom position.
Documents
- Memorandum and articles of associationThe constitution filed with the Registrar of Companies.
- Identity and address proofsFor directors, shareholders and beneficial owners.
- Business plan and expected flowsBanks and EMIs use it to assess the activity.
- Source-of-funds evidenceFor the share capital and initial funding.
- Registered office agreementConfirms the statutory address in Cyprus.
Timeline
- 1Structure and name approvalAgree shareholding, directors and whether a holding layer is needed; reserve the name.
- 2IncorporationFile the constitutional documents with the Registrar of Companies.
- 3Tax registrationObtain the company tax number and register for VAT where required.
- 4Bank and EMI onboardingApplications to matched institutions, each running its own due diligence.
- 5Ongoing complianceBookkeeping, audit, tax returns and beneficial ownership updates.
Tax notes
- Corporate income tax is 15% from 1 January 2026, charged at company level on net profits after deductible costs such as the owner's salary.
- Dividends paid to non-resident shareholders carry no Cyprus withholding tax, except 17% on payments to companies in EU-listed non-cooperative jurisdictions and 5% on payments to related companies in low-tax jurisdictions.
- Dividends received by a Cyprus company are generally exempt from corporate tax, which supports holding structures, subject to anti-abuse rules.
- The owner's salary is taxed under the personal bands and social insurance, and the expense reduces corporate profit.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Best fit: EU owners with a resident director and a clear business narrative.
- Non-EU owners who do not relocate should expect more questions or a requirement for local directors.
- EMIs complement traditional banks for payment flows; all accounts remain subject to due diligence.
Questions
Is a Cyprus company an offshore company?
No. It is an EU company subject to EU directives, audit requirements and beneficial ownership registers. That status is why EU banks, EMIs and payment providers tend to accept it more readily than low-tax jurisdictions outside the EU.
How are dividends from a Cyprus company taxed?
Profits are taxed at 15% in the company. Dividends to non-resident shareholders generally carry no Cyprus withholding tax, and non-domiciled Cypriot residents pay no special defence contribution on them. Your country of residence may still tax them.
Can a non-EU citizen own a Cyprus company?
Yes, but banks usually want to see local management, which often means a resident director. Living in Cyprus personally requires a residence permit, so plan the company and the residence route together.
Do I need to move to Cyprus?
Not to own the company, but relocation makes substance and banking easier and is required for the personal non-dom benefits. Without it, expect local directors and closer bank scrutiny.
Is Cyprus good for a holding company?
Often, yes. Dividends received are generally exempt from corporate tax, outgoing dividends to most non-residents carry no withholding tax, and Cyprus has a broad treaty network. Real substance in Cyprus is essential for the structure to hold.
Cyprus tax residency and relocation
Cyprus tax residency is available to people who spend more than 183 days a year on the island or meet the 60-day rule through local work, a home and limited time elsewhere. As of 2026, non-domiciled residents pay no defence contribution on dividends and interest for up to 17 years.
Under the 60-day rule you are Cyprus tax resident for a year if you spend at least 60 days in Cyprus, do not stay more than 183 days in any other single country, carry on a business, job or directorship in Cyprus that continues through the year, and keep a home in Cyprus that you own or rent. If the Cyprus activity ends during the year, residency for that year falls away.
Non-domicile status is what makes Cyprus interesting for founders and investors. Residents without a Cyprus domicile pay no special defence contribution on dividends and interest. After 17 of the previous 20 years of residence you are deemed domiciled; since 2026 the exemption can be extended by two further five-year periods for a fixed payment of EUR 250,000 each.
Employees taking up a first job in Cyprus can exempt 50% of employment income in years when it exceeds EUR 55,000, for up to 17 years, provided they were not resident for the 15 consecutive years before. Other reliefs exist for lower salaries.
EU citizens register their residence with the Civil Registry and Migration Department and receive a registration certificate, commonly called the yellow slip; in our experience it is issued at the appointment itself. Non-EU nationals need a residence permit, which depends on their circumstances.
We coordinate the move; Cypriot lawyers and tax advisers confirm residency and non-dom positions.
Who it suits
EU founders relocating with their company
You will be a director of your Cyprus company and live there for part of the year.
Employees of international employers
You move for a job exercised in Cyprus and can use the salary exemption.
Investors living on dividends and interest
Your income is mainly passive and you want the non-dom position.
Founders planning a share sale
You want residency settled before an exit; gains on shares are generally exempt in Cyprus, though your former country may still claim tax.
Requirements
- Required
Home in Cyprus
Owned or rented for the tax year; leases are commonly certified with the municipality.
- Required
Business, job or directorship in Cyprus
Must continue through the year for the 60-day rule to apply.
- Required
Day-count evidence
Flight records and proof that you spent no more than 183 days in any other single country.
- Required
Immigration registration
A registration certificate for EU citizens; a residence permit for everyone else.
- Depends on your case
Non-dom application
Filed with the Tax Department when you consider you are not domiciled in Cyprus.
- Depends on your case
Tax residency certificate
Useful for banks and treaty claims once the conditions are met.
Documents
- Certified rental agreement or title deedEvidence of the permanent home in Cyprus.
- Employment contract or directorship documentsShows the Cyprus activity behind the 60-day rule.
- Passport or EU identity cardFor immigration registration and tax registration.
- Proof of address in CyprusUtility bills in your own name.
- Evidence of days abroadBoarding passes, flight records and entry or exit stamps.
- 183-day rule
- More than 183 days in the tax yearAs of 2026-10-25 · [1]
- Optional extension after deemed domicile
- EUR 250,000 per 5-year period, up to 2 periodsAs of 2026-10-25 · [1]
- 50% exemption, first employment in Cyprus
- 50% of pay above EUR 55,000, up to 17 years, after 15 years of non-residenceAs of 2026-10-25 · [5]
- Tax number registration (our experience)
- About 1 weekAs of 2026-02-11 · [9]
Timeline
- 1Find a homeSign a lease and have it certified where required.
- 2Prepare documentsEmployment contract or directorship, lease and identity documents.
- 3Immigration appointmentEU citizens receive the registration certificate; in our experience at the appointment itself.
- 4Tax registrationApply for a tax identification number; in our experience this takes about a week.
- 5Non-dom and residency evidenceClaim non-dom status, keep day-count records and apply for a residency certificate once eligible.
Tax notes
- Residents are taxed on worldwide income at personal rates from 0% up to EUR 22,000 rising to 35% above EUR 72,000, after exemptions.
- Non-domiciled residents pay no special defence contribution on dividends and interest. Rental income is no longer subject to the contribution from the 2026 tax year.
- Gains on the sale of shares are generally exempt from Cyprus income tax, while gains on Cyprus real estate fall under capital gains tax.
- Leaving your former country is a separate exercise. Its exit rules and treaty tie-breakers decide whether it still taxes you.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- A Cyprus bank account in your name helps evidence residence and day-to-day life on the island.
- Banks typically open personal accounts after you have registered residence and have a local address; each applies its own due diligence.
Questions
How does the Cyprus 60-day rule work?
You need at least 60 days in Cyprus in the tax year, no more than 183 days in any other single country, a business, job or directorship in Cyprus that lasts through the year, and a home there that you own or rent.
How long does Cyprus non-dom status last?
Until you are deemed domiciled after 17 of the previous 20 years of tax residence. From 2026 the exemption can be extended for two further five-year periods by paying EUR 250,000 for each period.
Do non-doms pay tax on dividends in Cyprus?
Non-domiciled residents are exempt from special defence contribution on dividends and interest, and dividends are also exempt from income tax, so in practice they are not taxed in Cyprus. The country where the dividend comes from may still withhold tax.
What is the 50% tax exemption in Cyprus?
Individuals starting a first job in Cyprus after at least 15 consecutive years of non-residence can exempt half of their employment income in any year it exceeds EUR 55,000, for up to 17 years.
Can non-EU citizens use the 60-day rule?
The tax rule itself does not depend on nationality, but you must be allowed to live in Cyprus and meet every condition. Non-EU nationals therefore need a residence permit, which shapes the timing.
Does Cyprus residency end my tax obligations at home?
Not automatically. Your former country's rules and any tax treaty decide whether it still taxes you. Plan the departure there with an adviser before relying on Cyprus treatment.
Banking in our network
We do not publish institution names: the right partner depends on your profile, and each institution keeps its own view on who it will serve.
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Banking partners
- Cyprus companies are generally well received by EU banks, EMIs and payment providers, which is the main reason clients choose the island. Approval remains subject to each institution's due diligence.
- Banks expect real management: an owner who lives in Cyprus and acts as director, or local directors where the owner does not relocate. Non-EU owners who will not relocate often meet more friction.
- Our Cyprus network covers corporate and EMI institutions; begin with the banking assessment.
Questions
What is the corporate tax rate in Cyprus in 2026?
15% from 1 January 2026, up from 12.5%, under the tax reform enacted in December 2025. Companies incorporated in Cyprus are tax resident by default from 2026 unless a tax treaty provides otherwise.
Who benefits most from Cyprus?
EU founders with banking-sensitive business models who can relocate or accept local management, pay themselves a market salary and take profits as dividends. It suits poorly anyone looking for a structure without substance.
Is Cyprus non-dom status still available?
Yes. Tax residents without a Cyprus domicile are exempt from special defence contribution on dividends and interest. After 17 of the last 20 years of residence you are deemed domiciled, although an optional paid extension now exists.
Sources
- 1.Cyprus Tax Department: Tax residency and domicile, retrieved 2026-10-25
- 2.Government of Cyprus: Tax reform in force from 1 January 2026, retrieved 2026-10-25
- 3.KPMG Cyprus: Main provisions of the tax reform, retrieved 2026-10-25
- 4.EY Global Tax News: Cyprus enacts major tax reform legislation, retrieved 2026-10-25
- 5.PwC Worldwide Tax Summaries: Cyprus, individual income determination, retrieved 2026-10-25
- 6.PwC Worldwide Tax Summaries: Cyprus, corporate withholding taxes, retrieved 2026-10-25
- 7.PwC Cyprus: Tax Facts & Figures 2026, retrieved 2026-10-25
- 8.Redomiciled case experience: Cyprus company and banking files (internal), retrieved 2026-10-25
- 9.Redomiciled case experience: relocations to Cyprus (internal), retrieved 2026-10-25
Reviewed by the Redomiciled team on .
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