How dividends are taxed

Dividend income is only taxed with Special Contribution for Defense at the rate of 17%

The persons that are subject to Special Contribution for Defense are:

  • Cyprus tax resident companies, and
  • Individuals who are tax resident and domiciled in Cyprus

Therefore, if you are the owner of a Cyprus Limited Company and you are not a Cyprus Tax resident or you fall under the category of non-domiciled individuals* then you are not liable to any tax on the dividends you receive from your company.

You might be liable to tax on dividend income in your home country.