Three 2026 tax changes that matter if you are moving to Cyprus

Cyprus's 2026 tax reform came into force on 1 January. Most of the coverage focuses on companies, but three of the changes land directly on people relocating here. None of them is a reason to move on its own — but if you are already planning the move, they change the arithmetic.

1. The dividend levy dropped from 17% to 5%. Special Defence Contribution (SDC) on dividends fell to 5% for profits earned from 1 January 2026. Non-domiciled residents still pay no SDC at all — this change matters most to people who have used up their 17-year non-dom window, or who never qualified for it.

2. Crypto disposals now carry a flat 8%. A new Article 20E taxes gains on the disposal of crypto-assets at a flat 8% from 1 January 2026, for individuals and companies alike, using the MiCA definition of a crypto-asset. Watch the scope: selling, spending or swapping crypto is a disposal at 8%, but mining income, staking rewards and DeFi yield are taxed as ordinary income when received — not at 8%. The 8% rate does not depend on your domicile.

3. The 60-day residence rule lost a condition. The 60-day fast track to Cyprus tax residency used to require that no other state considered you tax resident. From 1 January 2026 that condition is gone; dual residence is resolved through the tie-breaker article of the applicable double tax treaty instead. If your home country has no treaty with Cyprus, though, there is no tie-breaker to fall back on — so this helps treaty-country movers far more than others.