Most tax systems were built for salaries, property, and staying put. Cyprus was built for how wealth actually moves today — across borders, asset classes, and generations.
Cyprus taxes crypto disposal — selling, swapping, spending — at a flat rate. No progressive scale, no wealth tax, no exit tax. Unrealized gains are never taxed, so long-term holders pay nothing. Mining rewards are exempt entirely.
Structure through a Cyprus company and profits from crypto disposal are taxed at a flat 8% — then extract dividends tax-free under non-dom status. Compare that to 30–50% in most of Europe. Effective total: one of the lowest in the EU.
Staking income is treated separately and may be subject to different rates depending on how it’s 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. Any individual who hasn’t been a Cyprus tax resident for 17 of the preceding 20 years automatically qualifies — with the possibility to extend beyond 17 years under the new 2026 rules.
Running an AI product, SaaS, or software business? The Cyprus IP Box regime taxes qualifying intellectual property income at just 3% effective rate. One of the lowest in the world — inside the EU.
This applies to licensing revenue, API access fees, software subscriptions, and income from patents. If your business runs on code, Cyprus was built for you.
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 extra €20,000 deduction is a statutory incentive, not a loophole.
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, this is a rare combination — inside the EU, with full legal stability and a 17-year non-dom period that covers most planning horizons.
Under non-dom status, dividends and investment income are exempt from Special Defence Contribution for 17 years. Combined with 0% inheritance tax, Cyprus is one of the few EU jurisdictions where wealth can be structured, 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.