In the ever-evolving global landscape of private wealth, High Net Worth Individuals (HNWIs) are increasingly looking beyond traditional financial centres to jurisdictions that offer a blend of tax efficiency, legal certainty, lifestyle appeal and global connectivity.
While Switzerland, London and Monaco often have dominated the headlines, Cyprus has quietly emerged as one of the most compelling destinations for wealth structuring, investment and relocation.
A Tax Regime Designed for Modern Wealth
Recent tax legislation changes in jurisdictions like the UK have enabled the acceleration of Cyprus as a choice for high-wealth individuals looking to relocate. They have tested and compared Cyprus with other jurisdictions like Italy, Greece and UAE and, as they plan for their families and their future, they have decided that Cyprus is no longer a footnote but a strategic choice. What sets Cyprus apart is the simplicity and competitiveness of its tax system – fully aligned with EU and OECD standards, yet offering powerful incentives.
A standout feature is the non-domicile regime, which allows individuals who become tax residents of Cyprus – but are not deemed domiciled – to benefit from a complete exemption from taxation on worldwide dividend and passive interest income for a period of 17 years. There are also no effective taxes on wealth, gifts or inheritance, and no capital gains tax on the sale of specific securities, including shares and bonds – regardless of whether they are held in Cyprus or abroad. Combined, these features form a robust foundation for tax-efficient wealth preservation and passive income planning, always within a tax compliance fully monitored environment.
Cyprus also provides flexibility for establishing tax residency. In addition to the standard 183-day rule, individuals can qualify under the 60-day rule – a unique offering that enables global citizens to become tax residents by spending over 60 days in Cyprus per year, subject to meeting a few other straightforward criteria. This is ideal for entrepreneurs, investors and professionals with an international way of living, a flexible business schedule, who seek a well-designed infrastructure for their families.
A Trusted Legal and Regulatory Environment
Cyprus’ legal system, rooted in English common law, is familiar and highly regarded by international investors. The country has earned a strong reputation for reliability, due process and transparency and continues to meet the increasingly strict standards of international compliance required by the EU, OECD and FATF.
It also provides HNWIs with sophisticated structuring options for asset protection and succession planning. One of the most notable tools is the Cyprus International Trust (CIT) – a robust legal structure that allows individuals to secure assets under a protective framework that ensures privacy, security and control across generations. The absence of inheritance tax, combined with internationally tested trust laws and enforceability, makes Cyprus a serious contender for estate planning on a global level.
Cyprus also boasts a wide network of over 65 double tax treaties, facilitating cross-border investment and offering relief from double taxation – an important factor for globally mobile individuals and family offices.
Real Estate and Residency: Lifestyle Meets Strategy
Cyprus has always attracted international buyers to its real estate sector – and for good reason. Coastal cities like Limassol, Paphos and Larnaca offer luxury developments, marinas and a strong rental market. This allows entire families to enjoy the benefits of residency in an EU member state with access to top-tier healthcare, education and freedom of movement within the Schengen area.
Living Well – and Securely
Cyprus is more than just a smart financial choice – it’s also an exceptional place to live in. It ranks consistently as one of the safest countries in the EU, with low crime rates, a relaxed lifestyle and a strong sense of community. The healthcare system is modern and efficient, English is widely spoken, and international schools cater to expatriate families from across the globe. The cost of living remains relatively moderate, particularly when compared to other HNWI hubs. The island’s mix of sunshine, culture, gastronomy and connectivity (with direct flights to Europe, the Middle East, and North Africa) enhances its lifestyle appeal – particularly for those seeking a “base jurisdiction” where family, business and leisure can co-exist.
Pro-Business and Forward-Thinking
Cyprus has spent the past decade implementing structural reforms to support innovation, entrepreneurship and digital transformation. The Government has introduced competitive tax exemptions for foreign executives, including a 50% income tax exemption for newcomers earning over €55,000, available for a period of 17 years, and for corporate businesses, including the Intellectual Property (IP) regime which can reduce a company’s effective tax up to 2.5%. These policies have turned Cyprus into a hub for tech entrepreneurs, investment managers and corporate executives who choose to operate from or through the island. These tax rates and investment incentives provide legal infrastructures for HNWIs to relocate not only themselves and their families but also their management teams and business operations, which further enhances the idea of being taxed in a jurisdiction where they live and, at the same time, their businesses are managed and operate.
Cyprus: The Quiet Giant of Private Wealth Planning
For High Net Worth Individuals who value discretion, efficiency, access to the EU and a clear path to long-term residence or relocation, Cyprus offers a rarely matched combination of advantages. It respects international compliance norms without sacrificing competitiveness. It offers robust solutions for succession and asset protection, yet it remains easy to navigate. And it delivers a lifestyle that is both enriching and secure – something increasingly sought after in today’s uncertain world.
Whether the goal is to relocate, optimise tax exposure or build a multi-generational plan, Cyprus is no longer a “best-kept secret” – it is, quite simply, one of the smartest choices that an HNWI can make.
*Marios A. Cosma, Managing Partner, K. Treppides & Co. Ltd
- This article first appeared in the 2025 edition of The Cyprus Journal of Wealth Management. Click here to view it. To view the full edition, click here
