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Italy to Cyprus

Tax Savings Moving from Italy to Cyprus

Italy effective rate: 43.8%. Cyprus Non-Dom: 17.3%. Annual saving on €100k profit: €26,547.

Annual profit €50,000

€13,274

saved per year

Italy tax€21,900
Cyprus tax€8,626

Annual profit €100,000

€26,547

saved per year

Italy tax€43,800
Cyprus tax€17,253

Annual profit €200,000

€53,625

saved per year

Italy tax€87,600
Cyprus tax€33,975

10-year cumulative saving (at €100k/year)

€265,470

on the same income, in the same company structure — just a different country of residence

Full comparison by income level

Annual profit🇮🇹 Italy tax🇨🇾 Cyprus taxAnnual savingCyprus take-home
€50,000€21,900€8,626€13,274€41,374
€100,000€43,800€17,253€26,547€82,748
€200,000€87,600€33,975€53,625€166,025

🇮🇹 Tax burden in Italy

24% IRES + ~3.9% IRAP regional tax. 26% flat withholding on dividends. High social contributions for self-employed (Gestione Separata).

🇨🇾 Italy to Cyprus: key points

Italy-Cyprus double tax treaty. Italy applies deemed residency if the center of vital interests remains in Italy. Transfer of beneficial ownership and asset restructuring recommended before departure.

Frequently asked questions

How much tax does a business owner pay in Italy?
Under the entrepreneur dividend extraction model (company profit fully distributed as dividends), the effective rate in Italy is approximately 43.8%. On €100,000 company profit, that is approximately €43,800 in combined corporate and dividend taxes.
How much tax does a Non-Dom in Cyprus pay on the same income?
Cyprus Non-Dom: 15% corporate tax + 2.65% GHS on net dividends. On €100,000 company profit: €17,253 total (approximately 17.3% effective rate). Take-home: €82,748.
What is the annual tax saving moving from Italy to Cyprus?
At €100,000 company profit: €26,547 annual saving. Over 10 years, that is €265,470 — on the same income. At €50,000: €13,274/year. At €200,000: €53,625/year.
Is there a tax treaty between Italy and Cyprus?
Italy-Cyprus double tax treaty. Italy applies deemed residency if the center of vital interests remains in Italy. Transfer of beneficial ownership and asset restructuring recommended before departure.
Do I qualify for Cyprus Non-Dom status when moving from Italy?
Most nationals moving from Italy qualify automatically for Non-Dom status in Cyprus, as they have not been Cyprus tax residents for at least 17 of the previous 20 years. The key requirement is establishing Cyprus tax residency via the 183-day rule or the 60-day rule.

Model your own numbers

These calculations use the dividend extraction model. Enter your actual revenue, salary, and expenses in the calculator for a personalised Cyprus tax breakdown.

Open tax calculatorCheck Non-Dom eligibility

Related guides

italynon dom cyprusdouble tax treaties cyprus

Savings figures are based on 2026 published effective tax rates (PwC, EY, KPMG). The dividend extraction model applies a flat effective rate; actual rates are progressive and depend on deductions, salary/dividend split, treaty provisions, and personal circumstances. Not tax advice. Consult qualified advisors in both your home country and Cyprus before making decisions.