Do I pay tax on foreign income as a Cyprus non-dom?

Which foreign income is exempt for a Cyprus non-dom?

Foreign dividends and foreign interest. Two provisions work together. Articles 8(20) and 8(19) of Income Tax Law 118(I)/2002 exempt dividend and interest income from income tax, and Article 2(1) of Law 117(I)/2002 charges Special Defence Contribution only on someone who is both Cyprus tax resident and domiciled in Cyprus. A non-dom is outside that charge, so the combined Cyprus tax on those two categories is nil. Cyprus has no remittance basis, so bringing the money into the country changes nothing. GESY contributions still apply, which is covered below.

Which foreign income is still taxable in Cyprus?

Article 5 of Income Tax Law 118(I)/2002 charges a Cyprus tax resident on income arising both inside and outside the Republic. Foreign employment income, rents, pensions, trading and self-employment profits all stay within that charge. For the 2026 tax year the bands are nil up to €22,000, then 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above. Rental income is taxed on 80% of the gross after the 20% deduction in Article 9(2). You declare worldwide income annually. Non-residents, by contrast, are taxed only on Cyprus-source income.

How is a foreign pension taxed in Cyprus?

Article 20 of Income Tax Law 118(I)/2002 taxes a pension for services rendered outside Cyprus at a flat 5% on the amount above €5,000, assessed separately from all other income. The threshold was €3,420 up to 31 December 2025 and rose to €5,000 from 1 January 2026 under Law 244(I)/2025. The flat rate is optional: the same article lets you elect each year to be taxed under the normal bands instead, which usually costs less on a smaller pension because the first €22,000 is taxed at nil.

Do I pay GESY contributions on foreign income?

Yes. Article 19 of the General Healthcare System Law 89(I)/2001 charges an income earner 2.65%, and the Law defines income by reference to Article 5 of the Income Tax Law, expressly including dividends. Foreign dividends, interest and rents therefore carry GESY even where no income tax or SDC is due. Contributions stop once your earnings, pensions and other income together reach €180,000 in a year, so the most any individual pays on income is €4,770.

Can I claim relief for foreign tax already paid?

Yes, in most cases. Article 35 of Income Tax Law 118(I)/2002 gives a credit for foreign tax where a double taxation treaty applies, and Article 36 gives unilateral relief where there is no treaty. Either way the credit is capped at the Cyprus tax on that income, so foreign tax charged above the Cyprus rate is not refunded. The Ministry of Finance lists 72 treaty states. Relief matters most on rents, pensions and employment income, since exempt dividends and interest carry no Cyprus tax to credit against.