From Austria to Cyprus
Austria taxes the top euro at 55%. Cyprus taxes the dividend euro at zero.
Austria has no non-dom or flat-tax alternative. Top income tax runs at 55%, dividends and gains at 27.5%, and leaving with a private portfolio triggers an exit tax — even on small holdings. Cyprus answers with a 60-day residency route and 0% on dividends for 17 years.
55%
Austrian top rate (to 2029)
27.5%
Austrian tax on dividends/gains
0%
Cyprus non-dom on dividends
17 yrs
Cyprus non-dom window
- Cyprus lawyers + auditors, one team
- Founders from 12+ countries
- Fixed-fee written scopes
- Paphos · Limassol · Nicosia
Step 1 · Austria today
What you actually pay living in Austria
Here’s the headline tax burden a Austrian founderfaces in 2026 — income tax, tax on dividends and investment income, wealth or property-style taxes, and anything due on the way out. Regional and social-security add-ons are included where they materially change the number.
| Top income tax | 55% above €1m (extended through 31 December 2029); 50% in the bracket below €1m |
| Tax on dividends and capital gains on shares | 27.5% flat — no participation exemption at individual level |
| Tax on bank interest | 25% |
| Corporate tax | 23% since 2024 (was 24% in 2023, 25% through 2022) |
| Combined on distributed profits | Around 44.2% (23% corporate plus 27.5% on the remainder) |
| Social insurance | Roughly 21% employer + 18% employee on gross, largely uncapped on high salaries |
| Exit tax on private holdings | 27.5% on unrealised gains on any private portfolio participation — no minimum size; moves inside the EU get deferral until you actually sell |
| Non-dom / expat regime | None available to most people — a narrow discretionary benefit exists for scientists, artists and a small class of incoming HNW, rarely granted |
| Wealth and inheritance tax | No wealth tax since 1994, no inheritance tax since 2008; only a transfer tax on real estate |
Step 2 · Side by side
Austria vs Cyprus, line by line
Tap any row for the full “why this matters” explanation. The two columns are the two sides of the decision — what you pay today versus what you’d pay with Cyprus non-dom.
Interactive · 30-second estimate
See what a move to Cyprus is worth for you
Enter your annual distributed dividend income below. The calculator shows what you’d pay today in Austriaversus what you’d pay as a Cyprus non-dom, with a live side-by-side.
Assumes the full amount is distributed as dividends (or equivalent investment income) and the Austria tax on dividends and gains of 28% applies. Cyprus side assumes non-dom status plus the capped 2.65% health contribution. Real numbers depend on your full picture — we confirm on a free call.
Austria today
Tax paid
€68,750
You keep
€181,250
Cyprus non-dom
Tax paid
€4,770
You keep
€245,230
Your estimated saving
€63,980/ year
Over the 17-year Cyprus non-dom window: €1,087,660
25.6% of income back
Step 3 · Why the move
The structural issues driving Austrian founders out in 2026
55% top, extended all the way to 2029
The top rate of 55% on income above €1m was originally introduced as a temporary measure a decade ago. It's been extended repeatedly; the latest extension carries it through to the end of 2029. Combined with largely uncapped social contributions, the total wedge on high salaries is among the worst in Europe. Cyprus tops at 35% and social contributions cap out.
Around 44% combined on every dividend out of a GmbH
Running profits through an Austrian GmbH and drawing dividends gives you 23% corporate tax plus 27.5% on the distribution — around 44% effective on each euro distributed. Cyprus non-dom running the same business: 15% corporate plus 0% on the dividend plus a small capped health levy — around 17.5% all-in. On €500,000 distributed, the difference is roughly €133,000 a year.
The exit tax is broader than Germany's
Unlike Germany, which only catches stakes of 1% or more, Austria's exit tax hits any privately-held share position, no matter how small. 27.5% on the unrealised gain at emigration. The good news: moves inside the EU, Cyprus included, get deferral on request — the tax only falls due when you actually sell. Keep it in the cupboard and it never bites.
Step 4 · The Cyprus answer
Cyprus in one screen
The simplest founder tax position in the EU after the 2026 reform: low corporate rate, zero tax on dividends for non-doms for 17 years, no wealth tax, no inheritance tax. Six numbers tell most of the story.
Corporate income tax
15%
Flat; IP Box effective ≈3%
SDC on dividends (non-dom)
0%
For 17 years
Top personal tax
35%
First €22,000 at 0%
CGT on non-RE shares
0%
Only Cyprus real-estate shares are taxed
Wealth / net worth tax
None
No annual wealth levy
Inheritance / gift tax
None
Abolished decades ago; not coming back
Step 5 · Life in Cyprus
Beyond the tax math — why founders actually stay
Tax moves people in. Life keeps them here. Nine practical reasons families settle, beyond what the spreadsheet says.
Climate
340+ sunny days — #1 climate globally
More than 340 sunny days a year. Winter lows rarely below 13–15°C on the coast; sea swimmable April–November. WhereNext ranks Cyprus #1 for climate in 2026.
Safety
Among the 15 safest countries in the world
Ranked 13th globally by Global Finance 2026. Homicide rate 0.4–0.8 per 100,000. Low violent-crime environment — families notice within weeks.
Language
English + common-law legal system
English is the default business language; courts and contracts run in English. The legal system is inherited from the UK — familiar for founders from UK, US, Ireland and the Commonwealth.
Healthcare
Universal GESY since 2019 + strong private
Public healthcare covers everyone at ~2.65% of income. Cyprus has one of the EU's lowest death-rates from preventable causes. Private insurance adds €150–€300/adult/month — half of Western Europe.
Schools
British, American and IB schools across the island
British curriculum (IGCSE, A-Levels), American, and International Baccalaureate options across Nicosia, Limassol, Larnaca and Paphos — with long waitlists filled by children of relocating founders.
Connectivity
Two airports, Europe and Gulf in 4 hours
Direct flights from Larnaca and Paphos to London, Paris, Frankfurt, Athens, Dubai, Tel Aviv, Milan and Barcelona. Most of Europe, the Gulf and the Levant inside a 4-hour flight radius.
Step 6 · Your right to live in Cyprus
As an EU citizen you don't need permission. You just register.
Your right to live in Cyprus comes from being an EU citizen. The paperwork simply records that — it doesn't grant anything. Two stages: the Yellow Slip on arrival, upgraded to permanent residence after five years.
Yellow Slip
Your EU registration certificate
Filed once you’ve moved, within four months of arrival. Cheap, fast, and valid for life. You show what you’ll be doing in Cyprus (working, running a business, living off income, or joining a spouse) and that’s it.
Deadline
4 months after you arrive
Processing
About a month
Validity
Indefinite
After 5 years
Permanent residence, automatically
Stay five years and your registration upgrades to unconditional permanent residence. Short trips don’t interrupt the clock, and your right can’t be lost unless you leave Cyprus for more than two years straight.
Step 7 · Becoming a Cyprus tax resident
Two ways in: 183 days, or just 60
Cyprus lets you become tax resident either by being here most of the year, or — if you’re mobile — by spending as little as 60 days a year here and meeting a few extra conditions. The second route is the one mobile founders use.
The 183-day rule
Spend more than 183 days of the calendar year in Cyprus and you’re a Cyprus tax resident — full stop, no other conditions. The day you arrive counts, the day you leave doesn’t. This is for people who genuinely live here most of the year.
The 60-day rule
All three of these need to be true in the same year (the 2026 reform removed the older fourth condition):
- 1You spend at least 60 days in Cyprus
- 2You don't spend more than 183 days in any other single country
- 3You have a home in Cyprus (owned or rented) and you run a business, work or hold a directorship here — kept active through the end of the year
In plain English: a Cyprus home, a Cyprus company or role, and 60+ days a year on the island. Dual-residency conflicts are now resolved through the tax treaty with your other country rather than by a blanket "not resident elsewhere" test. How the 60-day rule works in practice →
Step 8 · Non-dom status
17 years of 0% tax on your dividends, interest and rent
Cyprus keeps a simple promise for newcomers: as long as you’re not domiciled here, worldwide dividends, interest and rental income skip the defence contribution that Cypriots pay. That’s a 17-year window where your investment income effectively sees a 0% line on the Cyprus side.
Dividends
Domiciled: 5% + small health levy
Non-dom: 0% + small health levy
Interest
Domiciled: 17% + small health levy
Non-dom: 0% + small health levy
Rental income
Domiciled: Progressive income tax
Non-dom: Progressive income tax
How long does non-dom last?
You get 17 years of non-dom status as standard. Under the 2026 reform, two additional 5-year extensions are available at €250,000 each, taking the window up to 27 years in total. Deemed-domiciled residents can instead elect a flat €50,000/year contribution for 5 years in lieu of the variable defence contribution. Enacted and in force. Non-dom, plain English → · What happens after year 17 →
Step 9 · Leaving Austria
Leaving Austria cleanly
Moving to Cyprus only works if Austriastops claiming you for tax at the same time. The steps below are the ones that actually matter — the rest is paperwork your lawyer handles.
- 1
Give up your Austrian home — not just your address
Deregistering at the local registry is not enough on its own. Austria keeps taxing you as a resident as long as you keep a home here available for your use, or as long as you have a habitual abode here (over about 6 months). Close or properly sublet the apartment, end the lease, and build a real centre of life in Cyprus — home, family, day-to-day — with the paperwork to match.
- 2
File for deferral on the exit tax
For moves inside the EU, Cyprus included, you can file a deferral application at the point of departure. The 27.5% on unrealised gains then sits on the shelf — only becoming payable if you actually sell while non-resident. If you never sell, it never falls due. The filing is the important bit: miss it and the tax becomes immediately payable.
- 3
No 10-year tail — a rare clean exit for Austrian nationals
Unlike Germany, Austria does not apply extended tax liability to its own citizens who move to lower-tax countries. Once you've genuinely ended your residency, Austria only taxes Austrian-source income going forward. No worldwide tail. That's a materially simpler exit than many neighbouring regimes.
- 4
Decide what happens to the GmbH
An Austrian GmbH stays Austrian-tax-resident wherever you live. Usual options: keep it and distribute dividends (the Austria-Cyprus treaty caps Austrian withholding at 10% for corporate holders; EU rules can take it to 0% where your Cyprus holding has real substance); put a Cyprus holding on top and restructure; or wind it down. Which one fits depends on the business.
Step 10 · Your relocation, month by month
From decision to non-dom, in five stages
The whole thing is usually a three-to-four month project for the paperwork, plus the time it takes you to physically relocate. See the relocation package →
- 1
Before you move
Get the exit side right
The biggest relocation mistakes happen at home, not in Cyprus. Confirm when your home-country tax residency actually ends, sort out any exit-tax exposure on company shares, and decide what happens to any existing business. This is where most of the money is made or lost.
- 2
Month 1
Set up the Cyprus side
If you plan to use the 60-day rule, you need a Cyprus company and a role in it. We handle the incorporation, registered office and tax registrations so it's ready before you arrive. About 5–10 business days.
- 3
Month 2
Move and file your Yellow Slip
You arrive, rent or buy a home, and file the Yellow Slip within four months. It's inexpensive, quick, and confirms your right to be here on paper.
- 4
Month 2 onwards
Build up your Cyprus days
Whichever route you use — 60 days with ties, or 183 days — the important thing is to track presence properly from day one. A simple log, boarding passes, and receipts are enough. We tell you when you've crossed the line.
- 5
Year 1
First Cyprus tax return, non-dom locked in
At the end of your first tax year we file the return that formally registers you as a Cyprus tax resident and non-dom. From that point forward, your dividends come to Cyprus on the 0% line for the next 17 years.
Step 11 · What it’s worth
Worked example: an Austrian founder distributing €400k from a GmbH
Vienna-based founder, 100% owner of an Austrian GmbH making €520,000 of profit, taking €400,000 out as dividends. Compared against moving to Cyprus as a non-dom with a Cyprus holding on top.
Today, in Austria
- GmbH profit€520,000
- Corporate tax (23%)€119,600
- Distributable€400,400
- Tax on dividend (27.5%)€110,110
- Take-home€290,290
After the move
- Cyprus Ltd profit€520,000
- Cyprus corporate tax (15%)€78,000
- Distributable€442,000
- Non-dom tax on dividend€0
- Health contribution (capped)~€4,770
- Take-home~€437,230
Annual net saving
~€147,000 per year
Over the 17-year non-dom window: ~€2.5m over the 17-year non-dom window
Step 12 · Common questions
FAQs from Austrian founders
I have a GmbH. What's the cleanest path?
Does the exit tax really catch a normal retail portfolio?
Does anything change if I'm not an Austrian citizen?
Do I need a visa for Cyprus?
Does the Austria-Cyprus treaty give me 0% on dividends?
How long does an Austria-to-Cyprus move take?
Find your fit
Which relocation package fits your Austria move?
Four quick questions — we’ll tell you which package fits and why, so your free consultation starts from a concrete plan instead of a blank page.
Package Finder
Answer 4 quick questions
Non-EU vs EU citizenship, days in Cyprus, Cyprus company needed, family composition — the same checks a lawyer would run on a first call.
Keep reading
Related guides for a move to Cyprus
Non-dom status, explained simply
The 17-year window of 0% on dividends, interest and rent — what it is and who qualifies.
Read guide →
The 60-day rule in practice
How mobile founders hold a stable Cyprus residency while still travelling most of the year.
Read guide →
Cyprus taxes 2026 — the full picture
Every Cyprus tax a founder actually pays, in one place, with the 2026 reform built in.
Read guide →
Will my home country still tax me?
The honest answer — when the move stops the clock at home, and when it doesn't.
Read guide →
Cyprus holding company — when it's worth it
Why many relocating founders interpose a Cyprus holding, and when they shouldn't bother.
Read guide →
The 50% salary exemption for new residents
If you're earning over €55,000 into Cyprus, half of it can come out of the tax base for 17 years.
Read guide →
Ready to price the move? Relocation package pricing · Cyprus company registration · Ongoing accounting
Official references
- Austrian tax administration — tariff levels
- Federal Ministry of Finance (BMF Austria)
- Federal legal information system (RIS)
- Cyprus Migration Department — Yellow Slip
- Cyprus Tax Department — individual tax residency
Page last reviewed April 2026. Estimates only — not legal, tax or financial advice. No solicitor-client relationship is created by reading it. Book a free consultation for written advice on your situation.
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