Cyprus: Capital Gains Tax

Austrian entrepreneurs and investors relocating to Cyprus face a complex web of exit tax rules, residency requirements, and treaty provisions that can either preserve or eliminate significant tax advantages. Understanding Austria's dwelling-based residence test, the section 27 deemed disposal rules, and the new annual reporting obligations for deferred exit tax is essential before departure, as mistakes made during relocation can trigger immediate tax liabilities or preserve unwanted Austrian tax exposure f

Cyprus continues to strengthen its position as a leading international business and investment hub through the expansion and modernisation of its Double Tax Treaty (DTT) network. These treaties help businesses and individuals avoid being taxed twice on the same income while providing greater certainty for cross-border investments and international operations.

Romania's 2026 reforms raised the tax on dividends and capital gains to 16%, while Cyprus leaves Non-Dom dividends outside Special Defence Contribution entirely.

Major UK tax changes took effect from April 2025. These include the introduction of a residence‑based tax system replacing the non‑dom regime, changes to capital gains tax reliefs, the treatment of furnished holiday lets as standard property, and the continued freezing of personal allowances and thresholds for the 2025/26 tax year.

Over the past few years, Cyprus has steadily become a preferred relocation destination for international businesses and professionals.

A Cyprus resident company holding a portfolio of listed securities, funds, or bonds can generate capital gains and dividend income entirely free of corporation tax.

From 6 April 2025, the United Kingdom moved to abolish the long-standing non-domicile regime, replacing it with a far more limited four-year foreign income and gains (FIG) exemption.

Cyprus has been a leading jurisdiction for Trust structures for several years, benefiting from its stable government and business-friendly tax policies.

Since 2017, there have only been two tests to determine Cyprus tax residency. These are the 183 Day Tax Residency Rule and the 60 Day Tax Residency Rule.