Cyprus — A Premier Destination for Global Citizens

Cyprus has emerged as a top choice for both EU and non-EU nationals seeking favorable residency in Cyprus, attractive Cyprus tax advantages, and an enviable lifestyle. Its strategic location, EU membership, and business-friendly environment make it an attractive destination for individuals aiming to optimize their personal and financial well-being.

Residency Options in Cyprus for EU and Non-EU Individuals

Cyprus provides access to work permits for non-EU individuals through Cyprus International Companies (CICs) approved by the Ministry of Interior. These companies are permitted to employ non-EU nationals in executive, managerial, and specialist positions, subject to minimum salary thresholds and immigration department clearance.

For EU Citizens

EU nationals enjoy the right to live and work in Cyprus without the need for a visa. After residing for more than three months, they are required to register and obtain a Registration Certificate (Yellow Slip), which facilitates access to healthcare, employment, and public services.

For Non-EU Citizens

Non-EU individuals can apply for Cyprus Permanent Residency through the investment program, which requires:

  • A minimum investment of €300,000 in Cyprus real estate, shares of Cypriot companies, or Cyprus Investment Funds.
  • A secured annual income from abroad, sufficient to support themselves and their dependents.

This residency is granted for life and extends to family members, offering a path to Cypriot citizenship after five years of continuous residence.

Cyprus Citizenship by Naturalisation

Foreign nationals who have legally resided in Cyprus for at least five to seven consecutive years, subject to conditions, may apply for Cypriot citizenship by naturalisation. Applicants must demonstrate genuine integration, a clean criminal record, and adequate knowledge of the Greek language.

Naturalisation offers the benefits of full EU citizenship, including the right to live, work, and travel freely within the European Union.

Digital Nomad Visa and Remote Work Options

The Cyprus Digital Nomad Visa allows non-EU/EEA nationals working remotely for foreign employers to reside in Cyprus for up to three years. This makes it an ideal location for freelancers and entrepreneurs who seek EU residency while continuing to operate globally.

 

Cyprus Tax Residency Rules and Benefits

In addition to permanent residency, Cyprus offers two tax residency routes that unlock the island’s generous tax advantages for individuals:

  • 183-Day Rule: Individuals automatically become tax residents of Cyprus if they spend more than 183 days in the country within a calendar year, with no additional criteria.
  • 60-Day Rule: Alternatively, individuals can qualify for Cyprus tax residency if they:
    • Spend at least 60 days in Cyprus during the tax year;
    • Do not reside in any other single country for more than 183 days;
    • Are not tax residents of any other country;
    • Carry out business in Cyprus and/or are employed or hold a directorship in a Cyprus tax resident company;
    • Maintain a permanent residential property in Cyprus (owned or rented).

These flexible residency options are ideal for entrepreneurs, international professionals, and remote workers. When combined with Cyprus’s non-domiciled tax regime, they provide access to:

  • 0% tax on dividends, interest, and rental income (for non-doms);
  • No inheritance or wealth tax;
  • Access to EU-compliant tax planning.

 

Managing Wealth and Establishing a Family Office in Cyprus

Cyprus has positioned itself as an attractive jurisdiction for high-net-worth individuals and families looking to manage global wealth from a secure, EU-based location. Through its combination of tax efficiency, regulatory stability, and professional expertise, Cyprus offers the ideal conditions to set up and operate a family office.

Key benefits include:

  • Access to expert financial, legal, and fiduciary services through a well-developed ecosystem of tax advisors, accountants, and lawyers.
  • Tax planning structures for succession, wealth preservation, and international investments, including trusts and holding companies.
  • Discreet yet compliant environment, with full alignment to EU substance, AML, and CRS regulations.

A Cyprus-based family office can oversee everything from asset allocation and legal structuring to philanthropic initiatives and intergenerational planning, offering peace of mind and operational flexibility from within the European Union.

 

Cyprus Tax Benefits: Optimizing Financial Efficiency

Cyprus offers a simple and efficient path to tax residency, unlocking access to a range of personal tax benefits that make it one of the most attractive jurisdictions in the EU. Below is an overview of the key advantages available to individuals who meet the tax residency criteria.

  • Non-Domiciled Tax Status: Exemption from Cyprus tax on dividends, interest, and rental income for 17 years.
  • Low Income Tax: Income up to €19,500 is tax-free, with progressive rates up to 35%.
  • 20% Exemption or €8,550 (whichever is lower): Available to certain individuals relocating to Cyprus for employment (grandfathered or transitional basis).
  • Cyprus Digital Nomad Visa Scheme: Non-EU nationals working remotely for foreign employers can apply for a one-year residence permit, renewable for up to two years, with tax residency possible after 183 days.

 

A Business-Friendly Environment

Cyprus ranks highly for ease of doing business, with a simple tax system and a corporate tax rate of 12.5% (increasing to 15% in 2025 in line with OECD rules). Other incentives include:

  • Under the EU Parent-Subsidiary and Interest & Royalties Directives, Cyprus companies can pay dividends, interest, and royalties to associated EU companies with no withholding tax, provided certain conditions are met, offering significant tax planning advantages for group structures.

  • Access to a wide network of double tax treaties.

  • No withholding tax on outbound dividends, interest, and royalties (under certain conditions).

  • No withholding tax on inbound dividends, interest, and royalties (subject to easily met conditions).

  • Tax exemptions on profits from overseas permanent establishments and the disposal of qualifying titles (shares, bonds, etc.).

 

Additional Strategic Reasons to Relocate to Cyprus

Beyond tax and residency benefits, Cyprus offers a well-rounded proposition for individuals and families:

  • Gateway to the European Union: Ideal for non-EU nationals seeking a reliable EU base for business and lifestyle purposes.
  • Start-up and Entrepreneurial Support: Government-backed programs and grants support innovation and tech-driven businesses.
  • Lower Cost of Living: Compared to many Western European capitals, Cyprus offers high-quality services at more accessible prices.
  • English-Speaking Environment: Public services, healthcare, education, and the private sector operate widely in English, easing integration.
  • Diverse International Communities: Well-established expat hubs support easy integration and networking.
  • Safe and Secure Living: Cyprus is considered one of the safest countries in the EU, with low crime rates.
  • Excellent Healthcare and Education: The GESY system provides public and private healthcare access; Cyprus also hosts quality international schools and universities.
  • Strategic Location: Located at the crossroads of Europe, the Middle East, and Africa, Cyprus is well-connected for international business and travel.
  • Dual Residency Planning: Cyprus allows efficient structuring for individuals who maintain economic ties abroad.
  • Mild Climate and Mediterranean Lifestyle: With 300+ days of sunshine, Cyprus offers an appealing year-round living environment.

These strategic advantages reinforce Cyprus’s position as a competitive and welcoming jurisdiction for global citizens.

 

Cyprus Location and Global Connectivity

Located at the crossroads of three continents, Cyprus serves as a strategic hub:

  • International Airports with flights to Europe, the Middle East, and North Africa.
  • Business Gateway: Ideal for companies targeting EMENA markets.

 

Investment Opportunities in Cyprus

Cyprus offers attractive options for foreign investors:

  • Real Estate in Cyprus: Strong property market with rental and capital appreciation potential.
  • Business and Startups: Thriving sectors include tourism, shipping, fintech, and energy.
  • Innovation Incentives: Cyprus supports tech and research through grants and tax credits.

 

Conclusion: Why Move to Cyprus

With its strategic location, favorable Cyprus tax system, high quality of life, and robust investment opportunities, Cyprus is an ideal jurisdiction for EU and non-EU nationals seeking personal and financial growth.

 

Ready to take the next step?

Whether you’re considering relocating, investing, or establishing tax residency in Cyprus, our team at Rightax is here to guide you every step of the way. Contact us today for a personalised consultation and discover how you can benefit from Cyprus’s unique advantages.

 

Contact details

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The authors expressly disclaim all and any liability and responsibility to any person, entity, or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.

Accordingly, no person, entity, or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.