Most tax systems were built for salaries, property, and staying put. Cyprus is built for how modern wealth actually moves — across borders, asset classes, and time.
Crypto is taxed only when you dispose — selling, swapping, or spending. A flat rate applies. No progressive scale, no wealth tax, no exit tax.
If you hold, you pay nothing.
Structure through a Cyprus company: 8% on crypto gains, then tax-free dividends under non-dom status. Effective total — among the lowest in Europe.
Staking income is treated separately and depends on how it is structured.
Under Cyprus non-dom status, dividends paid from your Cyprus company are completely exempt from tax for 17 years. No Special Defence Contribution, no withholding, no hidden charges.
Structure your income correctly and keep what you earn. New arrivals can often qualify, with extensions available under the 2026 rules.
Running an AI product, SaaS or software business? The Cyprus IP Box regime can reduce tax on qualifying intellectual property income to an effective rate of around 3%. One of the lowest in Europe — inside the EU.
This applies to licensing revenue, API access fees, software subscriptions, and income from patents. For software, AI and IP-led companies, Cyprus can be a highly efficient EU base.
Cyprus allows qualifying research and development expenses to be deducted at 120% of their actual cost. Spend €100,000 on building your product — deduct €120,000 from your taxable income. The additional €20,000 deduction is part of Cyprus’ statutory innovation framework.
Stack this with the IP Box regime and the effective corporate tax rate for an AI or SaaS company in a high R&D spend year can fall to near zero — entirely legally, entirely by design.
Qualifying activity follows the OECD Frascati definition — genuine product development, not routine maintenance or bug fixes.
Cyprus has no inheritance tax, no wealth tax, and no exit tax. For family offices and private wealth structures, that is rare inside the EU — with legal stability and a 17-year non-dom period covering most planning horizons.
Under non-dom status, dividends and investment income are exempt from Special Defence Contribution for 17 years, supporting multigenerational wealth structuring in an EU jurisdiction where capital can be grown and passed on without systematic erosion at each stage.
60+ Double Tax Treaties — Cyprus has one of the most extensive treaty networks in the region, covering major economies across Europe, Asia, and the Middle East. Income earned abroad is protected from being taxed twice.
| 🇨🇾 Cyprus |
🇮🇱 Israel |
🇳🇱 Netherlands |
🇩🇰 Denmark |
🇩🇪 Germany |
🇬🇧 UK |
🇸🇪 Sweden |
🇪🇸 Spain |
|
|---|---|---|---|---|---|---|---|---|
| Corporate tax rate | 15% | 23% | 25.8% | 22% | 30% | 25% | 20.6% | 25% |
| Crypto tax rate | 8% | 25% | 36%* | Up to 42% | Up to 45% | 20% | 30% | 19–23% |
| Unrealized gains taxed | Never | On disposal | Annually | On disposal | On disposal | On disposal | On disposal | On disposal |
| Dividend tax | 0% | 25% | 26.9% | Up to 42% | 25%+ | Up to 39% | 30% | 19–23% |
| IP / software income | 3% | 23% | 25.8% | 22% | 30%+ | 25% | 20.6% | 25% |
| Wealth tax | 0% | None | Box 3 | None | None | None | None | Regional |
| Inheritance tax | 0% | None | Up to 40% | Up to 15% | Up to 50% | Up to 40% | None | Up to 34% |
| Min. days for tax residency | 60 | 183 | 183 | 183 | 183 | 183 | 183 | 183 |
* Netherlands Box 3 taxes assets as a notional return annually, regardless of whether gains are realised. Figures are indicative — tax situations vary. Always consult a qualified advisor.
Book a free consultation and we’ll map it out together. We’ll look at your income sources, current structure, and show you exactly what Cyprus could mean for you.