everything a founder needs to know about cyprus
Tax strategy, residency, and relocation explained by the people who do it.
Last updated: September 2026
Cyprus became a top destination for international founders because its tax framework combines low corporate rates with a set of personal tax rules that most comparable jurisdictions have since closed. The Non-Dom regime, the 60-day residency test, and the IP box rate are all still in force for 2026, but each one has conditions that determine whether they apply to your specific situation.
The articles in this section are written for founders who are genuinely considering relocation, not as a general overview. Each one addresses a specific decision point: how the 60-day test actually works, what Cyprus banks ask for when you open a business account, how to structure an exit before or after you move, and what the process looks like in practice from incorporation through to personal tax registration.
Common questions
What is the 60-day rule and how is it different from the 183-day rule?
Cyprus has two routes to tax residency. The standard route requires 183 days on the island in a calendar year. The 60-day rule is available to founders who are not tax resident in any other country for more than 183 days in the same year. To qualify, you must spend at least 60 days in Cyprus, maintain permanent residence here (owned or rented), and hold a directorship or employment with a Cyprus company. Both routes produce full Cyprus tax resident status with access to Non-Dom status.
How long does Non-Dom status last, and can I lose it?
Non-Dom status is available for 17 years out of any 20 consecutive tax years as a Cyprus tax resident. It exempts dividend income and interest from the 17% Special Defence Contribution that applies to Cyprus-domiciled individuals. It does not exempt salary, rental income, or capital gains from immovable Cyprus property. Founders who become Cyprus-domiciled before the 17 years expire lose the status permanently, which is why the timing of your domicile declaration matters.
Do I need to close my foreign company before relocating?
Not necessarily, but retaining a foreign company after relocation creates risk if it has management and control in its home country, which can include a director who has since moved abroad. The more common approach is to interpose a Cyprus holding company above the existing trading entity, or to redomicile, depending on your jurisdiction. The right answer depends on your country of origin, the nature of the business, and existing contractual obligations.
What exit tax do I face when leaving my home country?
Exit tax exposure varies by country. Germany imposes a departure tax on shareholdings above 1% for founders resident ten or more years. The Netherlands applies a preserving assessment on gains in substantial interests (5% or more) payable for up to ten years after departure. The UK changed its non-dom rules in April 2025, introducing a four-year residence threshold. Each of these requires specific planning before departure, not after arrival in Cyprus.
What income does Cyprus tax for a Non-Dom resident?
Cyprus taxes employment and self-employment income at standard rates up to 35%, with a 50% exemption on employment income above EUR 55,000 for new residents during the first ten years. Dividends and interest received by a Non-Dom individual carry zero SDC. There is no wealth tax, no inheritance tax, and no capital gains tax on the disposal of shares in non-property-owning companies.
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Personal Tax
Your Personal
Tax Strategy.
Reading about the Non-Dom regime and the 60-day rule is the start. Implementing it correctly, with the right structure and timing is where Royal Pine comes in.
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