Cyprus offers one of Europe’s most favourable tax regimes for securities trading - whether you’re an individual investor or using a company. With 0% capital gains tax on qualifying securities and no dividend tax for non-residents, it has become a preferred destination for global traders.
In this guide, we answer the most common questions about how to trade in Cyprus, who qualifies for the tax exemptions, and how to structure your activity.
Is There Capital Gains Tax on Securities in Cyprus? No. Cyprus does not tax capital gains from qualifying securities, whether you trade personally as a tax resident or through a Cyprus-registered company.
This includes gains from:
Shares Bonds Options Futures Funds (UCITS, ICIS) Swaps and repos This exemption makes Cyprus a preferred jurisdiction for professional traders, asset managers, and private investors seeking to legally reduce their tax burden.
What Is Considered a Security in Cyprus? The term “securities” under Cyprus law includes:
Shares (including founders’ shares) Bonds and debentures Derivatives (options, futures, swaps, forwards) Short positions Depositary receipts Index-linked securities Collective investment schemes (e.g. UCITS, ICIS) Repurchase agreements (repos) Not considered securities:
Forex/currency trading Real estate Commodities (e.g. gold, silver) Cryptocurrencies (unless regulated as securities) Only gains from legally recognised securities qualify for the tax exemption.
How Can I Trade Securities in Cyprus? You have two options:
Option 1: Trade as an Individual (Tax Resident) You can become a Cyprus tax resident under one of two rules:
The 183-Day Rule Spend more than 183 days in Cyprus in one calendar year.
The 60-Day Rule Spend at least 60 days in Cyprus and:
Own or rent a home in Cyprus Have business/employment/directorship ties to Cyprus Not be tax resident anywhere else Non-domiciled residents also enjoy:
0% tax on dividends 0% tax on interest income This structure is ideal for long-term investors, remote traders, or digital nomads. Learn more about our Cyprus Non-Domicile Status to take full advantage of these tax benefits.
Option 2: Trade Through a Cyprus Company You don’t need to move to Cyprus to benefit. Many traders open a Cyprus company to trade securities from abroad.
Advantages: 0% capital gains tax 12.5% corporate tax (on net profit only) 0% withholding tax on dividends paid to non-residents Legal protection and limited liability Full deduction of business expenses Deductible Expenses May Include: Office rent and business software Legal, accounting, and audit fees Employee or contractor payments Advisory and IT costs Travel, telecom, and equipment Company registration takes up to 2 weeks. Directors can be appointed remotely. Learn more about our Open a Company in Cyprus service to get started.
Which Is Better: Personal Trading or Company Setup?
Question
Trade as a Person
Trade through a Company
Capital Gains Tax
0%
0%
Need to Reside in Cyprus?
Yes
No
Corporate Tax
N/A
12.5% on profits
Dividend Tax
0% (if non-dom)
0% (to non-residents)
Expense Deductions
Limited
Extensive
Legal Liability
Full
Limited (corporate shield)
Best For
Nomads, individual investors
Traders, funds, structured investors
Do I Need to Live in Cyprus to Trade? No. You can open a Cyprus company and trade globally. You don’t need to visit Cyprus or become a tax resident unless you want to trade personally.
However, if you want to benefit personally from Cyprus’ tax-free dividends and interest income, then 60-day or 183-day tax residency is required.
How Do I Open a Cyprus Company for Trading? Choose a company name Draft Articles of Association Appoint directors and shareholders Submit documents to the Registrar Open a bank account Register for tax and VAT (if applicable) The process takes about 2 weeks. Learn more about our Open a Company in Cyprus service. Our team can assist you from start to finish.
Final Thoughts Cyprus offers an ideal environment for securities trading with:
0% capital gains tax Tax-free dividends for non-residents Flexible structures for both individuals and companies Whether you're a solo trader, managing a fund, or simply looking to reduce your tax exposure, Cyprus gives you the tools to trade efficiently and legally. If you're ready to set up, our Cyprus Company Formation Service can help you establish a compliant structure with full legal support.
