Cyprus
Tax-friendly island with 320 sunny days and English-speaking services.
Important Notice: No Individual Advice
The information provided is for general informational purposes only and does not constitute individual legal, tax, or financial advice. Please consult qualified professionals for personal decisions.
Key Metrics
Cost of Living
Cost Breakdown
Quality of Life
Taxes
Tax information for Cyprus
Tax resident after 183 days or '60-day rule'
2024
March 31st of following year
No - worldwide income
🇨🇾 The Cypriot Tax System: Non-Dom, 60-Day Rule & 0% Dividends
Those not 'domiciled' in Cyprus (= no Cypriot passport, not >17 of last 20 years in CY) pay NO SDC (Special Defence Contribution)! This means: 0% on dividends, 0% on interest, 0% on foreign rental income. Valid for 17 years!
Unique in the EU! Tax residency after only 60 days/year possible if: (1) Not >183 days in another country, (2) Not tax resident elsewhere, (3) Business/employment in CY or CY director, (4) Permanent residence in CY. Ideal for digital nomads!
Non-Doms pay 0% SDC on foreign dividends! Normal residents: 17% SDC. Also interest and foreign rental income: 0% for Non-Doms. Cypriot dividends: 0% SDC for all (but 2.65% GHS on gross dividends).
Cyprus levies NO capital gains tax on securities (stocks, bonds, crypto)! Only Cypriot real estate: 20% CGT. Foreign real estate: 0%. Perfect for traders and investors. Crypto: Completely tax-free!
Progressive tax: €0-19,500 = 0%, then 20-35%. BUT: 50% exemption on salary >€100,000 for new residents (10 years)! Or: 20% exemption on salary from first employment in CY (7 years, max €8,550/year). Social security: 8.3% employee + 8.3% employer.
Foreign pensions: Choice between progressive taxation (0-35%) or 5% flat rate (SDC) on amount above €3,420. For most retirees, 5% flat is cheaper! Non-Doms: 0% SDC, so only normal income tax.
Non-Dom status is AUTOMATIC for all non-Cypriots! No application needed. 60-day rule requires proof (lease, flight tickets). IP Box: 80% exemption on IP income (effective 2.5% tax). EU member = freedom of movement. Downside: Hot climate, divided island.
Income Tax
| From | To | Rate |
|---|---|---|
| €0 | €19,500 | 0% |
| €19,500 | €28,000 | 20% |
| €28,000 | €36,300 | 25% |
| €36,300 | €60,000 | 30% |
| €60,000 | Unlimited | 35% |
50% exemption on foreign income above €100,000(10 years)
Pension Tax
Foreign pensions may elect the 5% Special Defence Contribution (exemption on first €3,420)
Capital Gains Tax
No capital gains tax on securities
Dividend Tax
SDC (Special Defence Contribution) of 17% on dividends
VAT
19%Important Notice
This is not tax advice. Cyprus has special rules for non-doms. Consult a Cypriot tax advisor.
This is not tax, legal, or investment advice. Tax laws change frequently and can be complex. The information provided is for general informational purposes only. Please consult a tax advisor licensed in Cyprus for your specific situation.
Healthcare
Healthcare in Cyprus
GHS since 2019
GHS 2.65% contribution
Expat Access
After contribution accessible
Excellent, English-speaking
€60-120/month optional
Climate Change & Future Outlook
Climate risks in Cyprus
Cyprus is EXTREMELY climate vulnerable - Mediterranean hotspot with existential WATER CRISIS! Europe's hottest island getting even hotter. Nicosia: 2050 unbearable. Agriculture collapsing. Moderate adaptive capacity (ND-GAIN #55), but small island = limited resources.
Climate Scenarios
Switch between IPCC SSP pathways
SSP2-4.5
Current policy trajectory – ~2.7°C warming by 2100, moderate mitigation.
Values are approximations relative to our SSP2-4.5 baseline. They illustrate directional change, not exact national projections.
Overall Climate Risk
Projected risk index (0 = low risk, 100 = extreme risk)
Risk Categories
Personal climate risk assessment
Tune the analysis to your health profile and comfort level.
Age group
Sensitivity
Risk tolerance
Personalized risk index
Current level: Very High
Priority risks
Water & Drought
Base 92 → Personal 92
Heat Stress
Base 88 → Personal 88
What to prioritize
- •Check long-term water security and avoid regions with frequent restrictions.
- •Prioritise shaded neighborhoods, AC-ready apartments, and early-morning routines.
- •Budget for higher insurance/utilities and diversify income streams against climate shocks.
Adaptation Measures
- •Desalination: 70% of water (5 major plants)
- •Solar boom: 15% power (target: 50% by 2030)
- •Water rationing: Mandatory during drought
- •€500M EU climate funds
- •Extreme water conservation: Desalination expensive (€1.5/m³!)
- •Summer exodus: June-September UNINHABITABLE
- •AC: Survival essential (not luxury!)
Climate Resilience
Moderate adaptive capacity (weak for risks!). ND-GAIN #55 readiness, #146 vulnerability. Small island = limited resources. Weaknesses: Water dependency on desalination (expensive!), tourism monoculture, small population, energy imports.
Tips
- 💡Real estate: ONLY with own water tank + solar! Nicosia uninhabitable. Prefer coast (Limassol, Paphos).
- 💡AVOID summer: June-September 40-45°C! May/October only option.
- 💡Water costs: €1.5/m³ (desalination expensive!). Budget accordingly.
- 💡Long-term: Island becoming uninhabitable. Have exit strategy!
Pros
- •70% water from desalination (works!)
- •Solar potential enormous (330 sunny days)
- •EU member: Access to climate funds
- •English-speaking + low taxes
Cons
- •EXISTENTIAL WATER CRISIS (70% desalination!)
- •Hottest EU island - summer UNINHABITABLE!
- •Agriculture DEAD (-40%)
- •Small island = NO escape option
Notes
Cyprus faces existential climate crisis - EU's hottest island becoming uninhabitable. 70% of water already from expensive desalination (€1.5/m³). Agriculture collapsing. Nicosia becoming unbearable in summer (>45°C). For expats: NOT recommended long-term - island becoming uninhabitable. Short-term: Coast only, only with AC + own water storage, avoid summer completely. Exit strategy essential. Despite EU membership, resources limited.
Data sources
Scientific Disclaimer
Climate projections are based on models with inherent uncertainties. Actual outcomes may differ. We present mainstream scientific consensus (IPCC) but acknowledge uncertainty ranges. This is not financial advice. Consult climate scientists and experts for specific decisions.
Safety & Security
Safety & Crime in Cyprus
Safety Indicators
Comparison with DACH Region
For comparison: Germany (CPI: 78), Austria (CPI: 71), Switzerland (CPI: 82)
Notes
Standard precautions recommended in urban areas.
Visa & Immigration
Immigration Options for Cyprus
Visa Options
Category F
For passive income
Digital Nomad Visa
No tax on foreign income
Path to Permanent Residency
Permanent residency after 5 years. Citizenship after 7 years.
Important Notice
Visa and immigration regulations change frequently. The information provided is for general informational purposes only. Please consult the official government website or an immigration attorney for current and accurate information.
Climate
Data Sources & Updates
Data Sources
- OECD Tax Database(OECD Terms of Use)
- NOAA Climate Data(Public Domain)
- WHO Global Health Observatory(CC BY-NC-SA 3.0)
- World Bank World Development Indicators(CC BY 4.0)
- Numbeo(User-Generated Data)
- Numbeo Quality of Life Index(CC BY 4.0)