Cyprus Dividend Tax Calculator

Cyprus does not levy income tax on dividends received by individuals. The charge that applies instead is Special Defence Contribution, and it applies only to individuals who are both Cyprus tax resident and Cyprus domiciled.

Where the rate is:

• 5 percent on dividends paid out of profits earned from 1 January 2026
• 17 percent on dividends paid out of profits earned before that date
• Nil where the recipient is Cyprus tax resident but not Cyprus domiciled

The reduction from 17 percent to 5 percent was part of the reform effective 1 January 2026, alongside the increase in the corporate rate to 15 percent.

What non-domiciled status means here

Domicile is a separate concept from residency. An individual can be Cyprus tax resident under the 183-day or 60-day rule while remaining non-domiciled, in which case dividends, interest and rental income fall outside Special Defence Contribution entirely. The residency test itself is modelled in the tax residency checker.

GESY applies either way

The General Healthcare System contribution is charged at 2.65 percent on dividend income and is not affected by domicile. A non-domiciled resident escapes Special Defence Contribution but still pays GESY, which is the part most often left out when a saving is quoted.

GESY runs against a single ceiling of 180,000 across all income sources combined, giving a maximum contribution of 4,770 per year. Salary, rent and interest consume that ceiling before a dividend reaches it, so the field above matters for anyone with other income.

What this does not include

• Withholding or tax charged in the jurisdiction paying the dividend, and any treaty relief against it.
• Deemed dividend distribution, which operates on undistributed profits rather than on an actual dividend. SDC on deemed distribution is abolished for profits earned from 2026.
• Disguised dividend distribution, introduced from 1 January 2026 at 10 percent for Cyprus resident and domiciled individuals, which catches private use of company assets and undervalued disposals.
• The 17 out of 20 year test that ends non-domiciled status, and the election available from 2026 to extend it for up to two further five-year periods for a lump sum.