Cyprus: Income Tax

Cyprus is positioning itself as a leading jurisdiction for high-net-worth individuals seeking sophisticated wealth structuring and tax planning solutions. With its non-domicile regime, evolving tax framework, and robust trust legislation, the jurisdiction offers internationally mobile families a comprehensive approach to preserving and transferring wealth across generations within a stable EU environment.

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.

When the OECD's Pillar Two global minimum tax rules were first announced, many predicted they would fundamentally reshape international tax planning and reduce the attractiveness of traditional holding and headquarters jurisdictions.

Running a company in Spain can mean paying tax on the same profit in several layers: corporate tax, savings tax on dividends, wealth tax, and solidarity tax. Cyprus offers a simpler structure with 15% corporate tax and minimal taxation on dividends for non-domiciled residents. This comparison examines how founders can structure their businesses more tax-efficiently.

In the Netherlands, corporate tax and Box 2 dividend tax combine to reduce what you keep from your profit. Here is how 200,000 euros of profit is treated in the Netherlands versus Cyprus.

Cyprus offers consultants a 15% corporate tax rate combined with near-zero dividend taxation for non-domiciled residents. Understanding how to structure expenses, extract profit through salary versus dividends, and establish genuine substance determines what a consultant actually keeps after tax.

Key economic updates and developments reported across Cyprus this week.

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.

In 2026, more business owners from Europe, the UK, Australia, Canada and the Middle East are considering Cyprus as a tax base and are relocating their operations to the island.