News & Insights

Private Client & Wealth Planning in Cyprus

Our Private Client practice advises high net worth individuals, families, and family offices on succession, tax planning, trusts, relocation, family law, and cross-border wealth structuring.

Cyprus has developed into a leading jurisdiction for private wealth structuring, estate planning, and international relocation. While relatively small in size, Cyprus offers a rare combination of EU membership, a common law legal system, tax efficiency, and political stability, making it particularly attractive to high net worth individuals (HNWIs) and internationally mobile families.

This overview highlights the principal legal and tax features of Cyprus relevant to private wealth planning, family offices, and cross-border asset structuring.

Why Cyprus for Private Wealth Planning

Over the past decade, Cyprus has attracted a growing number of HNWIs relocating for personal, business, and tax planning reasons. The jurisdiction is frequently selected due to:

• a stable and predictable legal system based on English common law
• full EU membership and access to EU legal protections
• favourable tax regime for individuals and businesses
• sophisticated professional services sector
• high quality of life, safety, and international connectivity

Recent geopolitical and economic developments have further accelerated this trend, with Cyprus emerging as a preferred relocation destination.

Business relocation and headquartering

Cyprus has implemented a government-backed initiative titled “Strategy for Attracting Businesses for Activities or/and Expansion of their Activities in Cyprus”. The strategy is designed to attract international businesses, their owners, and senior management, while also encouraging the relocation of specialised talent.
As a result:

• international companies in financial services, technology, fintech, and hospitality have relocated to Cyprus
• relocation decisions are often driven by tax optimisation, regulatory certainty, and quality-of-life considerations
• qualifying individuals may pursue Cypriot citizenship, subject to statutory conditions.

Limassol, in particular, has developed into a regional business and private wealth hub.

Impact of geopolitical developments

Following the outbreak of the wars in Ukraine and Gaza and the imposition of international sanctions, many international businesses and families sought jurisdictions offering legal certainty and continuity.

Cyprus has benefited significantly from this shift, attracting:

• technology and fintech groups
• family-owned enterprises
• senior executives and internationally mobile professionals

This has created a dynamic and competitive business environment with a strong international dimension.

Trusts and estate planning in Cyprus

Cyprus offers a highly attractive framework for estate planning and asset protection.

Key features include:

• no inheritance tax, wealth tax, or gift tax
• availability of Cyprus International Trusts
• strong asset protection and confidentiality safeguards
• flexibility in succession planning
• potential for perpetual trust duration

Cyprus trusts are commonly used by HNWIs for estate planning, wealth preservation, and intergenerational structuring.

Family law considerations

Cyprus is also a jurisdiction of choice for family law matters with an international element.

Advantages include:

• straightforward divorce procedures
• jurisdiction established if one spouse resides in Cyprus for at least three months
• no requirement for the marriage to have taken place in Cyprus
• preservation of the financial independence of each spouse’s estate

These features make Cyprus particularly suitable for cross-border family and matrimonial planning.

Tax planning and the Cyprus non-dom regime

One of the most significant incentives for HNWIs is the Cyprus non-dom tax regime.

Key benefits include:

• exemption from taxation on interest and dividend income, irrespective of source
Eligibility requirements include:
• physical presence in Cyprus for at least 60 days per year
• ownership or rental of residential property in Cyprus
• demonstration of economic interest in Cyprus
• absence of tax residency or presence of 183 days or more in another country

Following the abolishment of the UK non-dom regime, Cyprus is increasingly viewed as a preferred alternative.

Additional tax advantages

Other tax features attracting private wealth and international businesses include:

• corporate tax rate of 15%, fully compliant with EU and OECD standards (effective from 1 January 2026*)
• exemption on profits from disposal of securities
• no withholding tax on dividends and interest paid to non-residents
• exemption of foreign permanent establishment profits in most cases
• 100% income tax exemption for employment exercised abroad for over 90 days
• Cyprus IP Box regime, with an effective tax rate of approximately 2.5% on qualifying IP income
• 50% income tax exemption for qualifying first employment in Cyprus exceeding EUR55,000 per annum

*Recent tax reforms, entering into force for the first time since 2003/2004, introduce an increase in the corporate tax rate from 12,5% to 15%, abolish deemed dividend distribution rules, and preserve most existing tax incentives, aligning Cyprus with Pillar Two global standards.

Family offices in Cyprus

Cyprus is increasingly selected for the establishment of family offices due to:

• availability of experienced and multilingual professionals
• flexibility in structuring and operation
• access to non-dom and other tax benefits
• absence of restrictions on foreign ownership or activities

Conclusion

Cyprus combines a robust legal framework, favorable tax regime, and strategic geographic location at the crossroads of Europe, the Middle East, and Africa. Recent judicial reforms, including new Civil Procedure Rules and the establishment of a specialist Commercial Court, further enhance legal certainty.
Taken together, these factors position Cyprus as a highly attractive jurisdiction for private wealth structuring, estate planning, and international business relocation.

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FAQ SECTION
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Frequently Asked Questions

Q: Why do high net worth individuals choose Cyprus for private wealth planning?
A: Cyprus offers EU membership, a common law legal system, favourable tax treatment, no inheritance or wealth taxes, and a high quality of life, making it particularly attractive to HNWIs.

Q: Does Cyprus have inheritance or wealth tax?
A: No. Cyprus does not impose inheritance tax, wealth tax, or gift tax.

Q: What is the Cyprus non-dom tax regime?
A: The non-dom regime allows qualifying individuals to receive interest and dividend income tax-free in Cyprus, subject to meeting specific residency and eligibility criteria.

Q: Can trusts be used for estate planning in Cyprus?
A: Yes. Cyprus International Trusts are commonly used for estate planning, asset protection, and confidentiality, offering significant flexibility and tax advantages.

Q: Is Cyprus suitable for family offices?
A: Yes. Cyprus offers a skilled workforce, flexible structuring options, tax incentives, and no restrictions on foreign ownership, making it an attractive base for family offices.

Navigating private wealth, tax structuring, and cross-border asset planning requires more than technical knowledge of the law. It demands an integrated understanding of how succession, tax, corporate, and family law intersect, particularly where international families, multiple jurisdictions, and long-term wealth preservation objectives are involved.

Our firm adopts a holistic, partner-led approach to private wealth advisory, combining legal analysis with strategic foresight. We work closely with clients, their advisors, and family offices to design robust and adaptable structures that balance compliance, confidentiality, and efficiency, while anticipating future regulatory and personal developments.

We advise high net worth individuals, families, and family offices on all aspects of private wealth law in Cyprus, providing tailored, discreet, and commercially informed advice.

For further information or to discuss your specific circumstances in confidence, please contact our Private Wealth team by telephone at +357 25 101080 or by email at info@mylonas.law