Figures verified16 OctoberNext weekly checkMondays 06:00Deadline 31 October31 October 2026
Russian residents

Cyprus tax for Russian nationals.

Non-dom. Structures. Planning.

Cyprus has a large Russian-speaking community and a long history of Russian-owned corporate structures. Here's the current tax picture for Russian nationals and residents moving to or operating through Cyprus.

0%
Dividend (non-dom)
Suspended
Russia-Cyprus DTT
15%
Corporate tax
60 days
Residency rule
Treaty status — important
Russia-Cyprus DTT suspended

Russia suspended the double tax treaty with Cyprus in August 2023. Russian-source income is no longer protected by treaty rates — withholding taxes apply at Russian domestic rates.

Treaty statusSuspended (2023)
Russian WHT (dividends)15% (domestic rate)
Russian WHT (interest)20% (domestic rate)
Impact on holding cosSignificant
Planning requiredYes — urgently
Cyprus non-dom benefits
Still available for residents

Non-dom status in Cyprus is fully available to Russian nationals who establish Cyprus tax residency. The SDC exemption applies regardless of DTT status.

Dividend tax (non-dom)0%
Interest tax (non-dom)0%
Inheritance tax0%
60-day ruleApplies
Non-dom duration17 years
Banking considerations
Access to EU banking

Russian nationals can open Cyprus corporate accounts subject to enhanced due diligence. EU-licensed EMIs and some specialist banks remain accessible for properly structured entities.

Due diligence levelEnhanced
Documentation requiredExtensive
EMI accountsGenerally available
Local bankCase by case
Timeline4–8 weeks typical

Russia-Cyprus tax treaty suspension — what it means

Russia unilaterally suspended the double tax treaty with Cyprus (and several other jurisdictions) in August 2023. This means that Russian-source income — including dividends from Russian companies and interest from Russian sources — is no longer covered by preferential treaty rates. Russian withholding taxes now apply at full domestic rates.

For Russian nationals who have already relocated to Cyprus and hold assets outside Russia, the impact is limited. Non-dom status, Cyprus corporate structures and the broader Cyprus tax regime remain fully available and effective. For those with significant Russian-source income, specialist restructuring advice is strongly recommended.

Structuring for Russian nationals in Cyprus
Effective structures
Cyprus holding company for non-Russian assets
Non-dom individual status for dividend extractions
Cyprus trust for asset protection and succession
UAE company for Russian business activities (if Russia-UAE treaty intact)
IP holding in Cyprus for non-Russian IP income
What needs restructuring
Russian holding company dividends15% WHT now applies
Russian interest income20% WHT now applies
CFC rules (Russia)Review required
Russian CFC reportingMay still apply to Cyprus cos
Sanctions exposureLegal review essential
BankingEnhanced KYC required
Important compliance note

The legal and tax position for Russian nationals operating international structures has changed significantly since 2022. Sanctions compliance, CFC reporting obligations in Russia and the treaty suspension all require careful legal and tax advice specific to your individual situation. This page provides general information only. We strongly recommend a consultation before making any structural changes.

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Questions about Cyprus tax as a Russian national?

Ask Taxerly for general guidance or book a consultation with a licensed Cyprus tax advisor experienced in Russian-related matters.

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