Country profile
South Cyprus (Non-Dom)
Best : For an EU holding and the non-dom regime (dividends exempt from SDC), against the backdrop of a divided island.
An EU and eurozone island in the eastern Mediterranean (about 930,000 people in the Republic-controlled area), English-speaking in business, with Limassol and Nicosia as hubs. 15% corporate tax, a 17-year non-dom regime and a wide tax treaty network.
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International rankings
The main public indices scoring business climate, economic freedom, corruption, peace and domestic safety. Figures copied from the official editions; a weak rank shows where to look closer.
| Index | Score | Rank |
|---|---|---|
| Doing Business 2020Banque mondiale / World BankScore 0–100, rank out of 190 economies (1 = best). | 73.4 | #54 / 190 |
| B-READY 2025Banque mondiale / World BankThree pillars scored 0–100 (regulatory framework, public services, operational efficiency). No overall rank: the World Bank publishes a quintile per pillar across 101 economies. |
| |
| Index of Economic Freedom 2026Heritage FoundationScore 0–100, rank out of 184 countries (1 = freest). | 74.1 | #18 / 184 |
| Corruption Perceptions Index 2025Transparency InternationalScore 0–100 (100 = very clean), rank out of 182 countries. | 55 | #49 / 182 |
| Global Peace Index 2026Institute for Economics & PeaceScore 1–5 (lower = more peaceful), rank out of 163 countries. | 1.967 | #80 / 163 |
| GPI 2026 — Societal Safety and SecurityInstitute for Economics & PeaceScore 1–5 (lower = safer), rank out of 163 countries (1 = safest). | 2.207 | #73 / 163 |
- Doing Business 2020 : Last published edition (data as of May 2019). The World Bank discontinued the series in 2021 after data irregularities: read it as a historical benchmark.
- B-READY 2025 : Successor to Doing Business. Sample averages: 66.3 / 54.0 / 60.0. The 2026 edition (over 160 economies) is due by end-2026.
- Index of Economic Freedom 2026 : Hong Kong has not been graded separately since 2021 (folded into China).
- Corruption Perceptions Index 2025 : Published February 2026.
- Global Peace Index 2026 : Overall rank: conflict, domestic safety and militarisation. Day-to-day safety is the next row. Malta and Hong Kong are not covered.
- GPI 2026 — Societal Safety and Security : Appendix C of the 2026 GPI: homicide, violent crime, terrorism and instability. Excludes armed conflict and militarisation. Malta and Hong Kong are not covered.
Geopolitical risk
Tax by profile
Tax and contributions actually paid on a reference case, for a newcomer who is tax resident in 2026. Where a special regime is open to them, it is applied and flagged. The score out of 10 follows from the effective rate.
Rentier
9.5/10
Effective rate ≈ 1.6%
Special regime applied : non-dom
Without it : 7%, score 8.5/10
- Non-dom: dividends and interest free of SDC and income tax
- GHS 2.65% on dividends and interest; gains on securities not taxed
Lasts 17 years out of 20. Without it: 5% on dividends and 17% on interest.
Employee
7/10
Effective rate ≈ 14%
Special regime applied : 50% exemption
Without it : 28%, score 4.5/10
- 50% exemption for a first job in Cyprus paying over €55,000: €1,600 of tax
- Social insurance 8.8% and GHS 2.65%
For 17 years, for a first job in Cyprus paying over €55,000 a year.
Entrepreneur
6.5/10
Effective rate ≈ 17%
Special regime applied : non-dom
Without it : 21%, score 6/10
- 2026 corporate tax: 15%
- Non-dom dividend: no SDC, GHS 2.65%
Without non-dom status, an extra 5% SDC on the dividend. For profit from intellectual property developed by the company (protected software, patent), the IP box exempts 80% of the profit: about 5.5% in total.
Reference cases and scoring
- Rentier: €100,000 a year from a foreign portfolio (€40,000 dividends, €20,000 interest, €40,000 gains on listed shares), no other activity.
- Employee: €60,000 gross a year paid by a local employer, single with no children. Employee contributions included, employer share excluded.
- Entrepreneur: €100,000 profit from a small local business, fully paid to the owner through the most common route (company and dividends, or sole trader).
Score = 10 minus 0.2 per point of effective rate (0% gives 10, 25% gives 5, 50% or more gives 0), rounded to the half point. Foreign withholding taxes and employer contributions are not counted.
Indicative figures as of October 2026 · Main source : pwc.com.cy. Not tax advice.
Business: incorporating
South Cyprus draws holdings and IP: 15% CIT, IP box for qualifying income. Structural cost stays high.
15%
Corporate tax
$1,500–$3,500
Setup
USD, indicative
$2,500–$6,500
Per year
USD, indicative
7/10
Ease
Ranking
6/10
Banking
Ranking
4.5/10
CFC
CFC ATAD
Professional formation often ~€1.2–2.6k plus registrar fees. Annually: office + secretary + bookkeeping + statutory audit: published scenarios around ~€2–6k/year for a standard Ltd. Holding tax can look great on paper; EU/audit operating cost is the real filter.
Who it fits
- Holding or IP with modeled Cyprus tax plan and documented intra-group flows
- Founders considering Cyprus residence with non-dom and local substance
- Activity needing EU passport and Mediterranean market access
The real drawbacks
- Shell without post-economic-substance directive substance: banks and TAXIS close accounts
- Bootstrap without Cypriot accounting and agent budget
- EU-resident founder managing everything from abroad without CFC plan
Real estate: investing
6.0 %
Net yield
indicative
≈ 105 k€
30 m² studio
Limassol
~8%
Purchase costs
+40%
10-year prices
+25%
5-year prices
- Rental income tax : 0% SDC +IR
- Capital gains (personal holding) : 20% (pas d'exonération durée)
- Capital gains (via company) : IS sur PV (indicatif)
- Public debt / GDP : 60%
- Currency : EUR
Reference listings portal : Bazaraki
Moving there: living and residence
5.6/10
Liberty score
equal weights
0–35% (>72k€)
Income tax
0%
Inheritance
Banned
Homeschool
Residence routes
- Category F (passive income): Renewable permit without local work right
- Work permit / EU: Employment-linked residence
- Permanent Residence (property investment): PR for investor and family
- Citizenship by investment (suspended): Cyprus passport. Not accessible via the legacy scheme for new applicants
Reference cities
- Limassol (cost mid)
A hub for finance, tech and shipping, with a large international and Russian-speaking community. Rents sharply up since 2022, heavy traffic, a car is essential, very hot summers. - Nicosie (cost mid)
A calmer, cheaper capital than Limassol, inland, with summers often above 40 °C. The city is split by the Green Line; the sea is 45 minutes away.
Go deeper on South Cyprus (Non-Dom)
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Indicative Liberty Stack data · Methodology · Rankings : Doing Business 2020, B-READY 2025, Index of Economic Freedom 2026, Corruption Perceptions Index 2025, Global Peace Index 2026, GPI 2026 — Societal Safety and Security.