Does Cyprus tax foreign income?

Employment and business income taxed normally; dividends, interest, rents free of the defence contribution for 17 years. In one line: 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains.

Can I run an online business from Cyprus?

Effective tax about 15% with the cheapest legal set-up, which costs about USD 3,500 a year: Cyprus Ltd at 15% (2026) + 0% dividend tax for non-doms; audit ~EUR 1.5-3k a year.

What is the catch in Cyprus?

The 60-day route needs a real home and business tie in Cyprus.

What residence or citizenship programmes does Cyprus have?

Permanent residence (Regulation 6.2): about USD 350k all-in for one person, ~3 months

Moving to Cyprus: tax, residence and real costs (2026)

Cyprus: 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains. The cheapest route to residence is eU registration, or Category F / digital-nomad permit; 60-day rule needs a Cyprus company and a home: about USD 1,500 in fees doing it yourself, with no investment, in about 2 months. Living costs about USD 2,100 a month for one person in Limassol, USD 1,200 in Aradippou, and around USD 1,150 on a bare-minimum budget.

Key facts

Tax in one line	0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains
Foreign income	employment and business income taxed normally; dividends, interest, rents free of the defence contribution for 17 years
Gains · dividends	0% except on Cypriot real estate · 0% for non-doms
Wealth · inheritance tax	none · none
Cheapest residence	EU registration, or Category F / digital-nomad permit; 60-day rule needs a Cyprus company and a home
Money needed	About USD 1,500 in fees doing it yourself, with no investment
Time	about 2 months
Doable yourself?	Yes, with a checklist
Days you must spend there	60 days (with a home, a Cypriot business/job, not resident elsewhere) or 183
Citizenship	7 years (naturalisation)
Online business	15% effective, about USD 3,500 a year to run: Cyprus Ltd at 15% (2026) + 0% dividend tax for non-doms; audit ~EUR 1.5-3k a year
Living (one person a month)	Limassol ~USD 2,100; bare minimum ~USD 1,150; family of four ~USD 3,650
Good for	non-dom: no tax on dividends, interest and gains on shares for 17 years; 60-day rule; 15% companies (12.5% until 2025); IP box; English common law
Common set-up	a Cypriot company with real management + the non-dom owner drawing dividends at 0%; 60-day tax residence for people who travel a lot

Pros and cons

Pros	Cons
60-day rule 0% on dividends via a Cyprus company + non-dom English widely spoken, EU	Small market Banks still cautious CIT rising

Programmes

Programme	All-in, one person	Months	Notes
Permanent residence (Regulation 6.2)	USD 350k	3	EUR 300k new property + EUR 50k income a year. Pairs with the 60-day tax residence and non-dom.

Questions

How much does residence in Cyprus cost?: EU registration, or Category F / digital-nomad permit; 60-day rule needs a Cyprus company and a home: about USD 1,500 in fees doing it yourself, with no investment, about 2 months.
Does Cyprus tax foreign income?: Employment and business income taxed normally; dividends, interest, rents free of the defence contribution for 17 years. In one line: 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains.
What does it cost to live in Cyprus?: Living costs about USD 2,100 a month for one person in Limassol, USD 1,200 in Aradippou, and around USD 1,150 on a bare-minimum budget (based on livingcost.org, 2026).
Can I run an online business from Cyprus?: Effective tax about 15% with the cheapest legal set-up, which costs about USD 3,500 a year: Cyprus Ltd at 15% (2026) + 0% dividend tax for non-doms; audit ~EUR 1.5-3k a year.
What is the catch in Cyprus?: The 60-day route needs a real home and business tie in Cyprus.
What residence or citizenship programmes does Cyprus have?: Permanent residence (Regulation 6.2): about USD 350k all-in for one person, ~3 months

Compare

Monaco: 0% on foreign income · 0% on local income (French citizens excepted)
Andorra: 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top
Switzerland (lump-sum taxation): lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included)
Italy (flat tax for new residents): EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income
Greece (non-dom): EUR 100k a year flat on all foreign income (+EUR 20k per family member) · up to 44% on Greek income
Malta: foreign income: 0% unless brought to Malta (min. tax EUR 5k) · 35% top on Maltese income
Portugal (IFICI): 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise
United Kingdom (FIG regime): first 4 years: 0% on foreign income and gains (FIG) · up to 45% on UK income · then worldwide

Compare all 53 places with your own income and budget →

Sources

https://www.mof.gov.cy
Living costs: based on livingcost.org (livingcost.org, June 2026), rounded