Key facts
| Item | Rate / rule |
|---|---|
| Corporate income tax | 15% (raised from 12.5% for 2026) |
| Dividends - domiciled residents | 5% SDC (cut from 17% for post-2026 profits) |
| Dividends - non-domiciled residents | 0% |
| Withholding on payments abroad | 0% on dividends, interest and royalties |
| Dividends received by a Cyprus company | Largely exempt |
| Statutory audit | Every company |
How the exemption works
Cyprus does not tax dividends under income tax at all - for residents they fall under the special defence contribution (SDC) instead. The SDC applies only to individuals who are both resident and domiciled in Cyprus. A resident without Cypriot domicile is exempt, which turns the personal layer of dividend taxation to zero. The 2026 reform kept this feature and cut the domiciled rate from 17% to 5% for post-2026 profits.[2]
Why it stacks with other countries
The exemption covers dividends from anywhere, so it combines with whichever corporate layer is cheapest. Own a Cypriot company: 15% corporate tax, then 0%, for 15% all-in. Own a Bulgarian company from Cyprus: 10% corporate tax plus Bulgaria’s 5% dividend withholding, for 14.5% all-in. Route dividends through a Cyprus holding company and the corporate dividend exemption plus the 0% outbound withholding keep the chain clean in both directions.[1][4]
The catch
The status requires genuinely becoming a Cyprus tax resident (physical presence, a home, ties) and losing residency where you came from; many countries apply exit taxes or keep taxing people who leave on paper only. Domicile is a legal concept with its own clock: long-term residents eventually acquire a Cypriot domicile and fall back into the SDC. And the company side still needs substance - a Cypriot letterbox managed from elsewhere is resident elsewhere.[2][5]
常见问题
Who counts as a non-domiciled resident in Cyprus?
A Cyprus tax resident who does not have a Cypriot domicile of origin or long-term deemed domicile. The exemption from the special defence contribution applies while that status lasts.
Is the 0% limited to dividends from Cypriot companies?
No - the SDC exemption covers dividend income generally, including dividends from foreign companies. The source country may still withhold its own tax on the way out.
What is the total burden for a founder who relocates?
With a Cypriot operating company: 15% corporate tax and 0% on the dividend: 15% in total. That compares with roughly 30–55% for the same founder staying in most western EU countries.
跨境结果取决于税务居民身份、受控外国企业规则和真实的经济实质 - 纸面架构是远远不够的。请参见下方的免责声明。
来源
本文引用的编号参考资料。法律链接至官方注册机构中的整合文本。