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Tax Guide Cyprus
Technical Guides • Tax Guide Cyprus
Tax Guide Cyprus
Understanding Cyprus–UK tax rules, residency, and cross-border planning
Cyprus continues to attract professionals, retirees, and internationally mobile families thanks to its climate, lifestyle, and favourable tax environment.
But with differing residency rules, local taxes, and UK-Cyprus treaty obligations, getting your tax position wrong can lead to penalties, double taxation, or unexpected bills.
Our Tax Guide for Expats in Cyprus (2025 Edition) explains how the Cyprus system works, how it interacts with the UK, and what expats must do to stay compliant and tax-efficient.
Whether you're planning a relocation, renting out a UK property, receiving foreign pensions, or investing across borders, this guide gives you the clarity you need.
What You’ll Learn
- Tax residency rules in Cyprus and the UK
Understand how the 183-day rule and the 60-day rule work, how the UK Statutory Residence Test applies, and how treaty tie-breakers determine your final residency. - Where your income should be taxed
Learn which country taxes pensions, salaries, rental income, and bank interest, and why paying the wrong country can cause problems. - How common income types are taxed
Explore taxation of foreign pensions, savings interest, dividends, rental income, and employment income under Cyprus rules. - Double-tax treaty protections
See how UK–Cyprus treaty provisions prevent double taxation, and what paperwork is needed to claim relief correctly. - Inheritance and succession considerations
Understand forced-heirship rules, local will requirements, UK IHT exposure, and how expats can elect their national law for succession. - Practical steps for new and existing residents
Registration, annual filings, domicile status, social-insurance considerations, and common mistakes to avoid.
Who This Guide Is For
- UK expats moving to or already living in Cyprus who want clarity on their tax obligations.
- Retirees receiving UK pensions and considering Cyprus’s pension tax options.
- Property owners renting out UK or Cypriot homes and needing to understand cross-border taxation.
- Professionals, remote workers, and digital nomads using Cyprus as a base.
- Financial advisers and family offices supporting clients with Cyprus–UK connections.
If you have income, assets, or family ties in both the UK and Cyprus, this guide will help you navigate the rules confidently.
FAQs
You qualify under the 183-day rule or the 60-day rule (if specific criteria are met). Accurate day-counting and evidence of ties are essential.
It depends on the income type. Some UK-source income remains taxable in the UK, while other income becomes taxable in Cyprus with relief available under the treaty.
Foreign pensions can be taxed at normal Cyprus rates or a 5% flat rate after the first €3,420. Choosing the right method depends on the size and structure of your pension income.
UK property income remains taxable in the UK, but Cyprus also taxes rental profits. The UK–Cyprus treaty allows credit to avoid double taxation.
No - but UK domicile rules may still subject your worldwide estate to UK IHT, even if you have lived in Cyprus for many years.
SDC applies to certain passive income like interest, dividends, and rents, but only if you are both resident and domiciled in Cyprus for tax purposes.
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