Taxes in Cyprus for Israelis
The basic rules to know before and after you move: tax residence, the non-dom regime, the 2026 reform, and the fact that there is no tax treaty with Israel. Every rule links to its official source.
✓ Checked against the sources: October 2026⚠️ This isn't tax advice. It's general information checked against official sources, and it can change. Before deciding, talk to an accountant who knows both Israel and Cyprus.
When you become a Cypriot tax resident
Someone who spends more than 183 days in Cyprus in a tax year is a Cypriot tax resident. There's also a shorter route, the "60-day rule", with extra conditions. From 2026 it applies even if you're a tax resident of another country. Tax residents are taxed on worldwide income.
Source: Tax Department: Tax Reform 2026
The non-dom regime
If your domicile of origin is outside Cyprus, as it is for most Israelis, you generally don't pay the Special Defence Contribution (SDC) on dividends and interest. Someone who has been a tax resident for 17 of the last 20 years is treated as domiciled in Cyprus.
From 2026 you can extend the status by paying €250,000 for each five-year period, for up to two periods. Those who do pay SDC pay 5% on dividends from 2026 (down from 17%).
Source: Tax Department: Tax Reform 2026
🔒 4 more sections in this guide
- 💶 Income tax from 2026
- 🇮🇱 There is no double tax treaty between Israel and Cyprus
- 🗂️ Annual return, and crypto
- 🧑💻 Self-employed
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