During late 2025 and the first quarter of 2026, Cyprus has experienced a marked increase in interest from high-net-worth individuals and family offices originating from the Middle East. This trend has been driven by geopolitical diversification strategies, succession planning considerations, and the desire to establish a secure and tax-efficient base within the European Union.
A central pillar of this migration is the Cyprus Permanent Residency Program under Regulation 6(2) of the Aliens and Immigration Regulations. The program requires a minimum investment of EUR 300,000 in qualifying real estate, shares in a Cyprus company with demonstrable economic substance, or units in Cyprus collective investment organizations. Applicants must also demonstrate secured annual income of at least EUR 50,000, increased by EUR 15,000 for a spouse and EUR 10,000 for each dependent child. Recent administrative practice in 2025 and 2026 continues to confirm processing timelines of approximately two to four months, reinforcing the program’s efficiency compared with other European residency options.
From a tax perspective, the Cyprus non-domicile regime, introduced through amendments to the Special Defence Contribution Law in July 2015, remains a primary attraction. Individuals who become Cyprus tax residents but are not domiciled in Cyprus benefit from a 17-year exemption from Special Defence Contribution on dividends, interest, and rental income. Additionally, Cyprus imposes no wealth tax or inheritance tax and provides an exemption from capital gains tax on the disposal of securities, as defined in the Income Tax Law.
The flexibility of establishing Cyprus tax residency through the 60-day rule, introduced in 2017, further enhances the jurisdiction’s appeal to internationally mobile individuals. The rule requires the maintenance of a permanent residence in Cyprus, the conduct of business or employment in Cyprus, and the absence of tax residency in any other jurisdiction during the relevant tax year.
Cyprus’ extensive double tax treaty network, including treaties with the United Arab Emirates and Qatar, facilitates efficient cross-border structuring and minimizes the risk of double taxation. The jurisdiction’s English common law legal system, strategic geographic location bridging Europe, the Middle East, and Africa, and sophisticated professional services infrastructure further support the establishment of single-family offices and regional holding structures.
In the context of increasing regulatory scrutiny in traditional offshore jurisdictions and the global implementation of the Pillar Two framework, Cyprus offers a compliant and stable EU platform for wealth preservation and intergenerational planning. The recent acceleration of interest from Middle Eastern investors underscores Cyprus’ evolving role as the natural European hub for regional wealth.
Savva & Associates advises international clients, family offices, entrepreneurs, and professional advisers on Cyprus tax structuring, residency planning, and cross-border arrangements. We focus on practical, defensible solutions that align tax efficiency with substance, compliance, and long-term planning objectives.
Further insights on Cyprus taxation, residency planning, banking, compliance and international structuring are available at www.savvacyprus.com.
Please get in touch with our team at:
| Charles Savva Managing Director BA, MBA, TEP, CA [email protected] +357 22516671 | Mina Pieri Senior Manager FCCA, MBA [email protected] +357 22510207 | Makis Pavlou Account Manager FCCA [email protected] +357 22510257 |