Cyprus

Tax residency in Cyprus is generally triggered by physical presence exceeding 60 days in a calendar year. Foreign income treatment: unknown. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

Non-domiciled residents exempt from SDC (defence levy) on dividends. Only 60 days needed for tax residency if not tax resident elsewhere. IP Box: 2.5% effective rate. No CGT except on Cyprus real estate.

The standard corporate income tax rate is 12.5%. The administrative process is considered straightforward, with minimal bureaucratic friction.

Banking access in Cyprus is attainable but may require more documentation and time than in simpler jurisdictions. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Cyprus is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Based on our scoring model, Cyprus ranks highest for Freelancer and Founder / Entrepreneur. It offers a reasonable proposition for freelancer (score: 64/100). It offers a reasonable proposition for founder / entrepreneur (score: 64/100).