Foreign income in Cyprus.
Non-dom means most of it is tax free. Cyprus tax residents with non-dom status pay 0% on foreign dividend and interest income. Foreign employment income and pensions are taxable at standard rates — but with generous reliefs.
The short answer
Cyprus taxes its residents on worldwide income. With non-dom status, foreign dividends and interest carry 0% Special Defence Contribution; foreign salary and pensions are taxed through the normal bands, where the first €22,000 is tax free, with reliefs for new residents and foreign pensions.
- Non-dom dividends
- 0%
- Dividends (domiciled)
- 5%
- Tax-free band
- €22,000
- Top rate
- 35%
2026 tax bands, old vs new
| 2026 taxable income | Rate | Before 2026 |
|---|---|---|
| €0 – €22,000 | 0% | €0 – €19,500 |
| €22,001 – €32,000 | 20% | €19,501 – €28,000 |
| €32,001 – €42,000 | 25% | €28,001 – €36,300 |
| €42,001 – €72,000 | 30% | €36,301 – €60,000 |
| Over €72,000 | 35% | Over €60,000 |
If you hold non-dom status
If you are domiciled in Cyprus
Avoid double taxation
Cyprus tax residents can elect to pay a flat rate of 5% on foreign pension income in excess of €3,420 per year. This election is available annually on the IR1 return and can be significantly more beneficial than applying the standard progressive income tax scale.
Where Cyprus has a double tax treaty with the source country, you can claim a credit for foreign withholding tax against your Cyprus tax liability. For example, if you receive UK rental income and HMRC withholds 20%, you can offset this against your Cyprus income tax — avoiding double taxation.
Have foreign income as a Cyprus resident?
Ask Taxerly about non-dom status, DTT relief, foreign pension taxation and optimising your global tax position.
Deadline
Personal return deadline, tax year 2025
31 October 2026
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