Cyprus offers one of Europe's most favourable tax regimes for securities trading. If you are looking for information on Cyprus capital gains tax stocks and shares, the island remains a premier destination for investors.
With 0% capital gains tax on qualifying securities and no dividend tax for non-domiciled tax residents
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.
Does Cyprus Have Capital Gains Tax on Securities? 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 minimise their tax burden.
What Is Considered a Security in Cyprus? It is crucial to distinguish between what Cyprus law defines as a "security" (tax-free) and other assets (taxable).
Qualifying Securities (0% Tax): Shares (including founders' shares) and Depositary Receipts 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 (Taxable): Forex/Currency Trading: Profits are generally treated as regular income Real Estate: Subject to Capital Gains Tax (20%) if the property is in Cyprus. Commodities (e.g. gold, silver) New for 2026: The 8% Crypto Tax: Previously, investors sought Cyprus tax-free crypto gains due to the lack of regulation. As of January 1st, 2026, Cyprus has introduced a specific regime for crypto-assets, simplifying the legal framework while remaining highly attractive to investors.
The New Rule: Gains from the disposal of crypto-assets are now taxed at a flat 8%.The Benefit: This change eliminates the previous uncertainty. Crypto gains are now distinct from standard income tax (which can reach 35%) or corporate tax (15%), and losses can be ring-fenced to offset future crypto gains.How Can I Trade Securities in Cyprus? You generally have two options: trading as an individual or trading through a company.
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, maintain a home here (owned or rented), have business ties, and not be a tax resident elsewhere. The "Non-Domicile" Advantage for Non-Residents The capital gains tax in Cyprus for non-residents (or non-domiciled residents) remains highly advantageous. If you become a tax resident but are "Non-Domiciled, you enjoy:
0% tax on dividends (worldwide income) 0% tax on interest income (worldwide income) This structure is ideal for long-term investors, remote traders, or digital nomads. Learn more about our Cyprus Non-Domicile Status
Updated Income Tax Thresholds (2026): If your trading activity is considered "active trading" of non-securities (like Forex), it is taxed as personal income. The tax-free allowance for personal income has increased from €19,500 to €22,000
Option 2: Trade Through a Cyprus Company Trading through a Cyprus private limited company is a popular choice for both local residents and international investors. This structure allows you to separate your personal assets from your trading activities while accessing a highly efficient corporate tax regime. The 2026 reform has slightly increased the headline rate but significantly simplified the administration for all company owners.
Corporate Advantages Under the New 2026 Reform 0% Capital Gains Tax on qualifying securities.8% Flat Tax on profits arising from crypto-assets.15% Corporate Tax on net profits from non-exempt sources (e.g., Forex or interest income).0% Withholding Tax on dividends paid to non-residents and non-domiciled individuals.No Deemed Dividend Distribution: The DDD regime is abolished for profits earned from 2026 onwards, giving you full control over profit distribution without forced penalties.Legal Protection: Benefit from limited liability and a robust legal framework.Expense Deductions: Full deduction of business expenses (software, hardware, fees, etc.) to reduce taxable income.Deductible Expenses: Since you are trading as a business, you can deduct expenses to lower your taxable base:
Office rent, business software, and hardware. Legal, accounting, and audit fees. Employee or contractor payments. Travel and telecom costs. Which Is Better: Personal Trading or Company Setup?
Question
Trade as a Person
Trade through a Company
Capital Gains Tax (Securities)
0%
0%
Crypto Tax (New 2026)
8% Flat Rate
8% Flat Rate
Need to Reside in Cyprus?
Yes
No
Corporate Tax
N/A
15% on non-exempt profits
Dividend Tax
5% if tax resident, 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. However, to benefit personally from tax-free dividends (paid from your company to you), you must be a Cyprus tax resident (Non-Dom). If you live elsewhere, dividends paid by the Cyprus company to you are subject to 0% Withholding Tax in Cyprus, but you will be subject to dividend taxation in your home country.
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? The process is fast and remote-friendly. As of 2026, Stamp Duty on initial capital has been abolished, reducing setup friction.
Choose a company name Draft Articles of Association Appoint directors and shareholders Submit documents to the Registrar Open a bank account (or an EMI account for faster trading access) Register for tax and VAT (if applicable) The process takes about 2-4 weeks. Learn more about our Open a Company in Cyprus
Final Thoughts The 2026 tax reform has modernized Cyprus, making it fully compliant with global standards while retaining its "crown jewel" benefits for traders:
0% Tax on Securities Gains (Shares, Bonds, ETFs). New 8% Flat Tax on Crypto (providing clarity and low rates). Simplified Corporate Regime: No more Deemed Dividends and extended loss relief. 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
