Cyprus: Tax Treaties

Malta residents considering Cyprus face a strategic choice between two EU jurisdictions with fundamentally different tax architectures. While Malta's remittance-basis system demands constant tracking and substance requirements have tightened around the corporate refund, Cyprus offers structural simplicity: a 0% dividend exemption that applies regardless of remittance, a 15% corporate rate with no engineering required, and a 60-day residency rule now accessible even during dual-residence transitions.

Cyprus has introduced a new cryptocurrency tax framework starting in 2026, establishing an 8% flat tax rate on crypto profits for both individuals and companies. This comprehensive guide explores how crypto assets are taxed, what qualifies as a taxable disposal, and the special rules that apply to mining income and financial products tied to digital assets.

Firstly, it is important to understand that tax residency and legal residency are two entirely different things and it is essential not to confuse the two.