Low corporate tax, the non-dom status, no inheritance tax and no tax on many capital gains: why Cyprus is so attractive from a tax perspective.
Cyprus combines moderate tax rates with some particularly attractive exemptions. Companies pay one of the lowest corporate tax rates in the EU (15%). For many individuals the non-dom status is the decisive lever.
On top of that come points that are handled differently in Germany: there is no inheritance or gift tax, profits from selling securities are generally tax-free, and dividends remain exempt from the special defence contribution for non-doms.
| Corporate tax | 15% |
| Income tax | progressive, tax-free allowance, top rate 35% |
| Dividends (non-dom) | 0% special defence contribution |
| Capital gains on securities | generally tax-free |
| Inheritance tax | none |
| Tax residency | 183-day or 60-day rule |
Up to 17 years with no special contribution on dividends, interest and rental income.
Tax resident in Cyprus from as little as 60 days under certain conditions.
Sales of shares and securities are generally tax-free.
15% corporate tax for the Cyprus Ltd.
Attractive but nuanced treatment – a case-by-case review is needed.
A dedicated visa programme and attractive conditions.
Tax optimisation via Cyprus only works if the German side is considered too. The end of your unlimited tax liability in Germany is central: only once you no longer have a residence or habitual abode there can Cyprus unfold its advantages. The double taxation agreement between Germany and Cyprus governs which state may tax which income.
There are also special rules that many underestimate: exit taxation (sec. 6 AStG) on company shares and the CFC rules (sec. 7–14 AStG) where substance is lacking. A clean structure takes both into account from the start.
Classically via the 183-day rule or via the Cypriot 60-day rule if its additional conditions are met. Residency is what unlocks benefits such as non-dom.
The key is that your unlimited tax liability in Germany ends and your centre of life is no longer there. Special topics such as exit taxation must be addressed separately.
Yes, provided your residence and – for companies – economic substance are genuinely in Cyprus. Pure letterbox constructions are not recognised.
Note: this is not tax or legal advice. Rules and rates (2026) may change; individual treatment must be clarified with qualified advisers.
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