The Cyprus personal tax framework has been significantly reshaped following the 1 January 2026 tax reform, introducing a range of measures aimed at enhancing the country’s attractiveness to foreign investors, executives and internationally mobile individuals. The reforms modernise key aspects of personal taxation, including updated tax residency criteria under the 60-day rule, revised income tax bands and expanded exemptions.
A central feature remains the non-domicile regime, offering exemptions from special defence contribution on dividends and interest for up to 17 years, with an option for a fixed contribution thereafter. In parallel, enhanced employment income exemptions—ranging from 20% to 50%, alongside a new 25% “brain gain” incentive—provide substantial tax efficiencies for individuals relocating to Cyprus.
Additional incentives include preferential taxation of share-based remuneration and targeted reliefs for families and sustainable investments. Overall, the reforms reinforce Cyprus’ position as a competitive jurisdiction for talent, investment and long-term wealth structuring within the EU.
