Tax Residency in Cyprus for Freelancers and IT Specialists

Cyprus has long been among the top destinations for the relocation of entrepreneurs, IT specialists, and freelancers. The main reason is its favorable tax system and the possibility to obtain tax residency through a simplified 60-day rule.

But the advantages of Cyprus are not limited to taxes. Here you will find:

• a high standard of living and safety;
• a mild Mediterranean climate;
• quality European-level education and healthcare;
• a well-developed infrastructure for business and startups;
• widespread use of the English language in daily life and business.

This combination makes Cyprus not only a tax-efficient jurisdiction, but also an attractive place to live and work.

Tax Advantages of Cyprus in 2025

Unlike many European countries, Cyprus offers:

• corporate tax — 12.5%;
• special tax benefits for individuals (Non-Dom regime);
• no tax on dividends, interest, and income from the sale of securities;
• one of the highest tax-free thresholds in the EU — the first €19,500 of annual income is exempt from income tax;
• the opportunity to become a tax resident in just 60 days.

60-Day Tax Residency in Cyprus

Freelancers and IT specialists often work remotely, so the standard “183-day” rule is not always convenient. In Cyprus, there is an alternative — tax residency in 60 days.

To become a tax resident of Cyprus under this scheme, you must:

1. Spend at least 60 days a year in Cyprus.
2. Not be a tax resident of another country during the same period.
3. Have accommodation in Cyprus (owned or rented).
4. Conduct business or be employed under a work contract in Cyprus.

Non-Dom Regime for IT Specialists and Freelancers

The Non-Domiciled (Non-Dom) status in Cyprus is one of the key tools of tax optimization for individuals. It allows you to completely avoid taxation of most passive income for 17 years:

• dividends — 0% tax;
• interest from deposits and loans — 0% tax;
• income from the sale of securities — 0% tax.

Taxation of Active Income

For active income (salaries, fees, income from services), a progressive income tax scale applies. The tax-free threshold in Cyprus is one of the highest in the EU — the first €19,500 annually is exempt from income tax.

Further, progressive rates apply:

Tax Benefits for Specialists in Cyprus

Cyprus actively attracts highly qualified professionals. For employees with an annual income of €55,000 or more, there is a 50% exemption from income tax for up to 17 years. This is particularly beneficial for programmers, IT managers, and specialists in international companies.

Advantages of Cyprus for the IT Sector and Freelancers

• Legal tax optimization — 0% on dividends and investment income.
• Simple structure — you can work as a sole proprietor or setting up a company in Cyprus.
• Flexibility — it is enough to reside in Cyprus for 60 days per year to obtain tax residency.
• International agreements — more than 65 double tax treaties.
• IT-friendly environment — the IP Box regime applies (income from intellectual property may be taxed at only 2.5%).

How to Obtain Tax Residency and Non-Dom in Cyprus

1. Obtain an immigration status.
2. Have accommodation in Cyprus — either rented or purchased.
3. Confirm your tax base — contracts or business registration.
4. Register with the Cypriot tax authorities and obtain a TIN (Tax Identification Number).
5. Apply for Non-Dom status.

Detailed: The Procedure of Obtaining Tax Residency in Cyprus

Cyprus is one of the most attractive jurisdictions for freelancers and IT specialists who want to reduce their tax burden and legally work in the EU. The 60-day residency and Non-Dom regime create unique conditions: minimal taxes, a simple system, and comfortable living.

Lawyers and tax consultants at Feod Group provide comprehensive support: assistance with obtaining tax residency and Non-Dom status, registering a business in Cyprus in the optimal form, obtaining the necessary immigration status (Temporary Residence, Permanent Residence), structuring income and assets.

With us, you receive not just a tax consultation, but a full turnkey solution — from immigration status and business to tax optimization.

Contact our office in Larnaca or online to receive an individual consultation!