Cyprus Tax 2027: The Complete Guide
Personal tax, Cyprus residency, Non-Dom status, pensions, investments and business taxation under the post-2026 tax regime.
The major reform of the Cyprus tax system took effect on 1 January 2026. For 2027, those rules form the foundation of Cyprus personal and corporate taxation.
For expatriates, internationally mobile individuals and business owners, the changes affect far more than the headline tax rates. Filing obligations, tax residency, Non-Dom planning, pensions, investment income, crypto-assets and company taxation all need to be considered together.
ProACT has advised expatriates and internationally mobile clients in Cyprus for more than 25 years. This guide explains the principal rules expected to apply for the 2027 tax year based on legislation and official guidance available at the time of publication.
Sam Orgill
Founder & CEO, ProACT Partnership
Cyprus Tax in 2027
The important point for 2027 is that Cyprus is now operating under the tax framework introduced by the major reform that became effective on 1 January 2026.
2027 is the second year of the new tax regime
The personal tax-free threshold remains €22,000, the standard corporation tax rate is 15%, the expanded individual filing requirements remain in force and individual income tax returns for tax years from 2026 onwards move to the Tax For All system.
Several of the changes introduced in 2026 are particularly relevant to expatriates: revised personal tax bands, reform of the 60-day residency rule, continuation and potential extension of the Non-Dom regime, revised foreign pension taxation and abolition of Special Defence Contribution on rental income.
Cyprus Tax Residency
The 183-Day Rule
An individual will generally be Cyprus tax resident where they spend more than 183 days in Cyprus during the calendar year.
The 60-Day Rule
Cyprus also provides a 60-day tax residency route for qualifying internationally mobile individuals.
Broadly, an individual must spend at least 60 days in Cyprus, maintain a permanent residential property in Cyprus and have the required employment, business or directorship connection with Cyprus.
Tax residency should always be considered alongside the tax laws of other countries in which you spend time. It is entirely possible for more than one country to claim you as tax resident under domestic law, in which case a Double Tax Treaty may need to determine the final position.
Who Must File a Tax Return?
Cyprus significantly expanded individual filing obligations from the 2026 tax year.
The Age 25–70 Filing Rule
A Cyprus tax resident who is aged from 25 to 70 during the tax year is generally required to file an annual income tax return regardless of the amount of income received, including where there is no income.
The rule is wider than this age test. A Cyprus tax resident who has relevant gross income falling within the Income Tax Law may be required to file regardless of age.
Therefore, being under 25 or over 70 does not automatically mean that no return is required. The exemption generally concerns individuals outside the 25–70 age range who have no relevant gross income.
Personal Income Tax
The tax bands introduced from 1 January 2026 continue to form the personal income tax framework going into 2027.
| Taxable Income | Rate | Cumulative Tax at Top of Band |
|---|---|---|
| €0 – €22,000 | 0% | €0 |
| €22,001 – €32,000 | 20% | €2,000 |
| €32,001 – €42,000 | 25% | €4,500 |
| €42,001 – €72,000 | 30% | €13,500 |
| Over €72,000 | 35% | €13,500 + 35% of excess |
Family, Housing & Green Tax Deductions
The post-2026 system introduced a number of targeted deductions for qualifying taxpayers, subject to conditions and income limits.
Dependent Children
| Dependent Child | Potential Deduction Per Parent |
|---|---|
| First child | €1,000 |
| Second child | €1,250 |
| Third and each subsequent child | €1,500 |
Primary Residence
Qualifying taxpayers may claim up to €2,000 per spouse, partner or eligible single person for qualifying rent or mortgage interest relating to their primary residence.
Green Expenditure
A deduction of up to €1,000 per qualifying spouse, partner or single person may be available for qualifying capital expenditure including improvements to the energy efficiency of the primary residence and certain expenditure connected with electric vehicles.
Home Insurance
Qualifying premiums for insurance of the residence against natural disasters may also qualify for a deduction, subject to a maximum of €500.
Non-Dom Status & Special Defence Contribution
Cyprus Non-Dom status remains one of the most important elements of the Cyprus tax regime for internationally mobile individuals.
A qualifying individual who is Cyprus tax resident but not domiciled in Cyprus is generally exempt from Special Defence Contribution on dividend and passive interest income.
| Income Source | Post-2026 SDC Position |
|---|---|
| Relevant dividends | 5% for applicable domiciled individuals; qualifying Non-Doms generally exempt |
| Passive interest | 17% in relevant cases; qualifying Non-Doms generally exempt |
| Rental income | SDC abolished from 2026 |
Extending Non-Dom Treatment
An individual who does not have a Cyprus domicile of origin but becomes deemed domiciled after being Cyprus tax resident for at least 17 of the preceding 20 years may potentially elect to extend the SDC exemption.
The alternative regime permits up to two additional five-year periods, with an upfront payment of €250,000 for each five-year period.
Foreign Pensions
Cyprus continues to offer a potentially attractive special tax regime for qualifying pension income arising from outside Cyprus.
A taxpayer can normally elect each year between:
| Option | Tax Treatment |
|---|---|
| Normal tax rates | Taxed using the normal personal income tax bands, including the €22,000 0% band |
| Special pension regime | 5% on qualifying foreign pension income exceeding €5,000 |
The best option depends on the level of pension income and other taxable income received during the year. The election can generally be considered annually.
General Health System – GeSY
GeSY contributions remain a separate consideration from personal income tax.
| Income / Contributor | Contribution Rate |
|---|---|
| Employee | 2.65% |
| Pensioner | 2.65% |
| Rent, interest, dividends and other relevant income | 2.65% |
| Self-employed | 4.00% |
| Employer contribution | 2.90% |
Contributions are generally subject to an annual income ceiling of €180,000.
Crypto-Assets
Cyprus introduced a specific tax regime for crypto-assets from 1 January 2026.
8% Crypto Tax
Qualifying gains from crypto-asset transactions are generally taxed at a flat 8%.
The regime can apply to events including disposal, exchange of one crypto-asset for another and use of crypto-assets as payment. Losses are generally restricted to offset against crypto gains within the same tax year.
Separate treatment can apply to crypto-assets obtained through mining.
DAC8 Reporting Begins in 2027
Crypto transparency also increases significantly in 2027. Reporting Crypto-Asset Service Providers are due to make the first Cyprus DAC8 reports by 30 June 2027 covering reportable activity during calendar year 2026.
Capital Gains Tax
Cyprus Capital Gains Tax remains primarily focused on Cyprus immovable property and certain interests in companies deriving value from Cyprus immovable property.
The standard CGT rate is 20%.
Lifetime Exemptions
| Type of Exemption | Current Maximum |
|---|---|
| General exemption | €30,000 |
| Qualifying agricultural land | €50,000 |
| Qualifying principal residence | €150,000 |
Companies & Corporation Tax
The standard Cyprus corporation tax rate increased from 12.5% to 15% with effect from 1 January 2026 and continues to form the corporate tax framework going into 2027.
Research & Development
The enhanced tax regime includes a 120% deduction for qualifying R&D expenditure, with the relevant incentive extended through 2030.
Agricultural & Livestock Investment
Enhanced deductions or capital allowances are also available for qualifying agricultural and livestock machinery and installations, subject to the detailed conditions of the legislation.
Tax Losses
The tax reform also extended the period during which qualifying tax losses may be carried forward, subject to the applicable statutory rules.
Company Return Deadline
For tax years from 2026 onwards, the normal deadline for a Cyprus company income tax return is 31 January of the second year following the tax year.
For example, the normal deadline for the 2026 company tax return is 31 January 2028.
Inheritance & Succession
Cyprus does not currently impose inheritance tax or estate duty on estates arising after the abolition of estate duty.
Cyprus Inheritance Tax: 0%
This does not necessarily mean that an expatriate estate is free from inheritance or estate taxes elsewhere. Another country may still impose tax depending on residence, domicile, nationality, asset location or other connecting factors.
Cyprus succession law can also contain forced-heirship restrictions where Cyprus succession law applies. International residents should therefore review their wills and the law governing their succession rather than considering inheritance tax in isolation.
Cyprus Tax Calendar 2027–2028
| Date | Key Obligation |
|---|---|
| 31 March 2027 | Annual employer PAYE / withholding return for 2026 |
| 30 June 2027 | First DAC8 crypto reporting deadline covering calendar year 2026 |
| 31 July 2027 | Statutory deadline for the 2026 individual income tax return, subject to any official extension |
| 31 July 2027 | First provisional income tax instalment for tax year 2027 |
| 31 December 2027 | Second provisional income tax instalment for tax year 2027 |
| 31 January 2028 | Normal filing deadline for the 2026 company income tax return |
| 31 July 2028 | Current statutory deadline for the 2027 individual income tax return, subject to future extension or amendment |
Cyprus Tax 2027 FAQ
If you are Cyprus tax resident and aged between 25 and 70 during the tax year, you are generally required to file regardless of the amount of your income, including where you have no income.
No. A Cyprus resident with relevant gross income may still have a filing obligation regardless of age. The age-based exemption principally applies where an individual is outside the 25–70 range and has no relevant gross income.
Under the tax bands applying from 2026 onwards, the first €22,000 of taxable income is taxed at 0%.
Potentially, yes. However, spending 60 days in Cyprus alone is not sufficient. The permanent home, Cyprus connection and other statutory requirements must also be satisfied.
Certain eligible individuals who become deemed domiciled after the relevant 17-year period can elect for up to two additional five-year periods by paying €250,000 for each period.
Qualifying foreign pension income can generally be taxed either under the normal personal income tax bands or under the special pension regime at 5% on the amount exceeding €5,000. The election can generally be considered annually.
No. Special Defence Contribution on rental income was abolished from 1 January 2026. Income Tax and GeSY may nevertheless still apply.
The special regime introduced from 2026 generally applies an 8% income tax rate to qualifying crypto-asset gains. Detailed rules apply to disposals, exchanges, payments and losses.
The standard corporation tax rate is 15%, following the increase that took effect from 1 January 2026.
Cyprus Tax Guide Archive
Need Help With Your Cyprus Tax Position?
Whether you are already living in Cyprus, planning your relocation, reviewing your Non-Dom position or preparing your annual Cyprus tax return, ProACT can help you understand your obligations and the planning opportunities available.
Cyprus Tax Return ServiceQuestions? Contact ProACT on +357 26 819 424
This guide is intended as general information only and is based on legislation and published guidance available at the date of publication. Tax treatment depends on individual circumstances and legislation may change. Professional advice should be obtained before taking or refraining from action.
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Social Insurance
The principal Social Insurance contribution rates applying during the current contribution cycle are: