A New Tax Year, A New Tax Home? Why Cyprus is the Expat Haven of 2025
As the spring tax year begins across the UK, Hong Kong, Singapore, Canada, South Africa, and Japan—following the old Julian calendar introduced by Julius Caesar and later abandoned by Christian countries in 1752—many expats are reassessing where they want to be resident for the next financial chapter.
And for good reason.
Sweeping changes in tax regimes across the UK, Portugal, and Spain are forcing expats—particularly remote workers, contractors, retirees, and investors—to consider where their money is safest and most efficient. In the search for better tax outcomes, Cyprus has emerged as a standout 2025 destination for individuals, companies, and family trusts.
Who Should Pay Attention?
This isn’t just for digital nomads or backpacking freelancers. The changes ahead affect:
Remote workers and freelancers who invoice globally
Contractors with income flowing through personal or limited companies
Retired expats drawing pensions from abroad
Investors in property, crypto, or global equities
Business owners and holding companies
Families seeking inheritance and trust planning
And especially: High net worth individuals who want to legally and strategically minimise global tax burdens while retaining access to European markets.
Why Cyprus?
Cyprus has long flown under the radar, but 2025 is its breakout year for expats, thanks to a combination of legal clarity, EU access, and remarkably favourable tax benefits:
Key Benefits for Expats in Cyprus:
0% tax on dividends received by individuals (ideal for shareholders and contractors)
0% tax on interest earned from loans (including capital repatriated via Cyprus)
No capital gains tax on sale of investments, business assets, or other properties (excluding local Cyprus real estate)
No inheritance tax on worldwide assets, gifts, or death transfers
UK expats can become non-domiciled after 10 years abroad, avoiding UK Inheritance Tax (IHT) on worldwide estates—saving up to 40%
Up to 24% saved on Capital Gains Tax when relocating from high-CGT countries like the UK
5% flat income tax on pension drawdowns—freeing your UK pension from income and inheritance taxes
12.5% corporate tax for Cyprus holding companies
0% tax on family trusts and business trusts that hold and receive income, assets, and dividends
What’s Driving the Shift?
Recent tax reforms in Portugal, Spain, and the UK have created friction for foreign residents. Higher CGT, new residency rules, and inheritance taxes are pushing many to look for better alternatives before the 2025 tax year fully takes hold.
Enter Cyprus: an EU member with an English-speaking legal system, common law foundations, and a regulatory regime that understands the needs of international residents and investors.
Thinking Ahead
If you’re an expat already feeling the impact of new tax burdens—or you anticipate changes on the horizon—now is the time to review your residency options. Cyprus offers more than just sun and sea: it’s becoming the smart base for building and preserving global wealth.
Spring may be a time of renewal—but in 2025, it might also be time for relocation.
For help & guidance, contact us.
