Cyprus excels as a tax residence for expats living and working abroad.

And not just because it is an island in the Mediterranean.

Tax residence

Cyprus is a top location for tax residence.

Income tax

For one, Cyprus has a generous personal allowance of €19,500 before you pay income tax.

Furthermore Cyprus has an optional special 5% flat tax rate on foreign pensions.

It is optional because you can elect to include the pension within your €19,500 tax free allowance if it works out that you’ll pay less tax.

Savings & Capital gains tax

In Cyprus there is no tax on savings income, investments or overseas assets.

Furthermore, if you own a property in Cyprus and you gift it to family, then you will pay 0% capital gains tax.

UK expats can also save capital gains tax on business investments and crypto sales.

0% Non-dom tax

Better still expats in Cyprus can register as non domiciled and pay zero tax on dividend and interest from businesses, investments and crypto gains.

Only Cyprus based assets will incur taxes. Offshore investments and business have no tax liability for non Dom expats using Cyprus as a tax resident base.

No inheritance tax

Even better Cyprus has no capital gains or inheritance tax for expat families and businesses.

The gifting to family of any asset, including Cyprus property, has no inheritance or capital gains taxes.

Assets held outside Cyprus can be held in a Cyprus family trust to assign a Cyprus tax status and avoid tax overseas.