Recent changes affecting Cyprus citizenship in 2026
January 2026: 60-day rule liberalised. Effective 1 January 2026 under the 2026 tax reform package, Cyprus removed the long-standing requirement that 60-day rule applicants prove they are not tax resident in any other country. Dual-residency cases are now resolved under treaty tie-breaker rules. The four remaining conditions (60+ days in Cyprus, no single other country >183 days, Cyprus employment/business/directorship, permanent Cyprus home) continue unchanged. This substantially broadens eligibility for internationally mobile founders, consultants, and executives transitioning to Cyprus from high-tax origins where exit rules deem residency to linger.
Corporate tax rate increased. From 1 January 2026 the Cyprus corporate tax rate rose from 12.5% to 15% to comply with the OECD Pillar Two global minimum tax framework. The personal income tax structure, non-dom regime, and 50% employment exemption were not changed by this reform. For DNV holders using the Cyprus Ltd + non-dom + directorship structure, the change adds 2.5 percentage points to the corporate-level cost but does not affect the dividend-level benefit.
Income tax-free threshold raised. The 2026 reform raised the personal income tax-free band from €19,500 to €22,000 of annual income. The progressive brackets above this also adjusted modestly upward.
SDC change for domiciled residents. Domiciled (non-non-dom) Cyprus tax residents now pay 5% SDC on dividends (down from 17%) and SDC no longer applies to rental income at all from 1 January 2026. This is a 2026 tax-reform liberalisation. Non-dom status retains its full 17-year SDC exemption.
Non-dom extension option. The 2026 reform introduced an option to extend non-dom status beyond the 17-year limit by paying a flat €50,000 per year. This is a niche provision relevant only to long-term residents with very high dividend income.
