Straight answers to the questions clients ask us most — on Cyprus tax residency, the Non-Dom regime, company formation, and how we work.
There are two routes. Under the 183-day rule, you become a Cyprus tax resident by spending more than 183 days in Cyprus in a tax year. Under the 60-day rule, you can qualify by spending at least 60 days in Cyprus, provided you do not spend more than 183 days in any single other country and maintain a permanent home and qualifying business, employment, or office ties in Cyprus. From 1 January 2026, being tax resident in another country does not automatically prevent qualification under the 60-day rule, although dual residence may need to be resolved under the applicable double tax treaty.
International Relocation servicesThe Non-Dom regime exempts qualifying Cyprus tax residents from Special Defence Contribution (SDC) on dividend and interest income for 17 years. You generally qualify if you become a Cyprus tax resident and were not domiciled in Cyprus — broadly, if you were not born to a Cypriot-domiciled father and have not been a Cyprus tax resident for 17 of the last 20 years. For most international clients relocating to Cyprus, Non-Dom status means dividends are received free of Cyprus tax, subject only to GHS (health system) contributions.
Estimate your savings with the Non-Dom CalculatorTax residency determines where you pay tax and is assessed year by year, based mainly on physical presence. Domicile is a longer-term legal concept connected to your permanent home and origin. In Cyprus, the distinction matters because SDC on dividend and interest income applies only to individuals who are both resident and domiciled in Cyprus — which is exactly what the Non-Dom regime addresses.
Take the Domicile TestCyprus tax residents are taxed on worldwide income, but the system is favourable for international clients: dividends and interest are exempt from income tax (and from SDC for Non-Doms), there is no wealth tax, no inheritance tax, and gains on the sale of securities such as shares are generally exempt. Personal income tax applies to salaries and business income at progressive rates, with the first band entirely tax-free, and a 50% exemption may be available for first employment in Cyprus above a remuneration threshold.
Try the Income Tax CalculatorA Cyprus company can typically be incorporated within one to two weeks, including name approval and registration with the Registrar of Companies. Opening a bank account and completing substance arrangements (office, directors, staffing where relevant) usually takes longer and should be planned as part of the overall structure — particularly where treaty benefits or EU directives will be relied upon.
Corporate Structuring servicesFollowing the Cyprus Tax Reform effective from 1 January 2026, the headline corporate income tax rate is 15% (previously 12.5%) — still among the most competitive in the European Union. Dividends received by a Cyprus holding company from subsidiaries generally benefit from a full participation exemption, and there is no withholding tax on outbound dividends paid to non-resident shareholders in most circumstances.
The Cyprus IP Box regime allows 80% of qualifying profits from qualifying intellectual property — such as software and patents — to be deducted, producing an effective tax rate as low as 3% on that income. The regime follows the OECD nexus approach, so the benefit is linked to research and development activity carried out by the company. It is particularly relevant for software, SaaS, and technology businesses.
Cyprus IP Box servicesYes — substance matters. For a Cyprus structure to be robust, management and control should genuinely be exercised in Cyprus: this typically means Cyprus-resident directors, board meetings held in Cyprus, a real office where appropriate, and decision-making that actually happens locally. The right level of substance depends on the structure and the jurisdictions involved, and we advise on this as part of every engagement.
Yes — since 6 July 2026, Cyprus offers a digital service for renewing residence permits of third-country nationals. It covers temporary permits for Remunerated Employment, Domestic Employment, employees of Companies of Foreign Interests, Family Reunification (for family members of Long-Term Residents and of employees of Companies of Foreign Interests), and Long-Term Resident permits. A verified CY Login account is required, and you must still attend in person for biometrics (fingerprints, photograph, signature) and permit collection.
Read our full guide to the digital renewal serviceNo. The digital platform currently covers renewals of existing permits only — first-time applications continue to follow the standard procedure. For employment categories, online renewal applies where the employee continues working for the same employer or company. Additional categories are expected to be added as Cyprus expands its digital government services.
Yes. Renewal applications may be submitted by the permit holder, the employer (for employment categories), or an authorised representative such as a law firm, provided the authorisation is registered through the platform. ASC acts as authorised representative for individuals and employers across the full range of Cyprus immigration matters, managing the entire electronic process end to end.
Ask us to handle your renewalWe begin with a scheduled consultation — in person in Nicosia or by video call — to understand your situation, objectives, and timeline. You will receive a clear view of the options available, the realistic tax outcomes, and the steps involved before any engagement begins. Use the Schedule a Consultation button or the contact page to get started.
Schedule a consultationYes — the majority of our clients are international: entrepreneurs, investors, funds, and families across Europe, the UK, the US, and beyond. We routinely co-ordinate with clients’ existing advisers in other jurisdictions so that Cyprus structures and relocations are implemented compliantly on both sides.
Yes. Much of our work combines the two — for example, moving a company’s IP to Cyprus while the founder establishes personal tax residency under the 60-day rule and Non-Dom status. Handling both together ensures the corporate and personal timelines are aligned, which is often where the most value is created or lost.
See examples in our case studiesEvery situation is different. Tell us about yours and we will give you a clear, practical view of the options.
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