Secure Your Financial Future: Become a Cyprus Tax Resident with Non-Dom Status
START SAVING ON INCOME TAX
For high-earning professionals and entrepreneurs across Europe, Cyprus offers more than just 300 days of sunshine. It provides one of the most attractive and legally robust tax frameworks in the European Union. By establishing Cyprus tax residency, you can significantly optimize your global income while enjoying a premium Mediterranean lifestyle.
Reduce your tax on your worldwide income.
Fast application process. Start saving the soonest.
Work from anywhere in the world.
No documentation fuss. We will handle everything.
Why High-Earners are Choosing Cyprus?
Key Strategic Benefits.
- 0% Tax on Dividends: As a non-domiciled status holder, you pay zero tax on worldwide dividend income for 17 years.
- 0% Tax on Interest: Your passive investment income from interest is entirely exempt from the Special Defence Contribution (SDC).
- 15% Corporate Tax: Ideal for company formation in Cyprus, giving your business a competitive edge in the EU market.
- Personal Income Tax Exemptions: The first €22,000 of your income is tax-free. For high-earners, a 50% tax exemption is available on remuneration exceeding €55,000 for those relocating to the Republic.
- No Wealth or Inheritance Tax: Protect your legacy and your assets without the burden of capital taxes common in other European jurisdictions.
A Cyprus tax resident is taxed on all the income from sources within or out of Cyprus. A non-Cyprus resident is taxed on certain income collected from sources in Cyprus.
50% Tax Deduction Is Provided On Remuneration From Any Employment Exercised In Cyprus By An Individual Who Was Not A Resident Of Cyprus Before The Commencement Of The Employment And With Annual Income Of Over €55.000
From 2022 Onwards. The Exception Is Provided For 17 Years From The Year Of Employment.An alternative of 20% exemption is also valid for 3 years if employee annual remuneration is less than €100.000
The following are deducted from your income
- Contributions to trade unions or professional bodies – The whole amount
- Rental income – 20% of rental income (for income tax
purposes) - Donations to approved charities (with receipts) – The whole amount
- Social Insurance, medical fund (maximum 1,5% of remuneration), pension
and provident fund contributions (maximum 10% of remuneration) and life
insurance premiums (maximum 7% of the insured amount) – Up to 1/5 of the chargeable income - Amount invested as from 1 January 2017 in an approved innovative small
and medium sized business either directly or indirectly (applicable up to 30
June 2021) – Up to 50% of the taxable income as calculated prior to this deduction (subject to a maximum of €150.000 per year). Unused deduction can be carried forward and claimed in the following 5 years subject to the above maximum. - Costs incurred for research and development – A higher deduction amounting to 120% of the expense is expected to be available soon.
How to Qualify: The 60-Day vs. 183-Day Rule
Specifically designed for international entrepreneurs. You can claim residency by staying just 60 days in Cyprus, provided you:
- Carry out business or are employed by a company in Cyprus.
- Maintain a permanent residential property (owned or rented).
- Are not a tax resident in any other country.
Other Tax advantages for individuals.
Profit form the sale of shares is exempt from Cyprus taxation provided that the assets do not include immovable property in Cyprus.
Pension received in respect of past employment outside Cyprus is taxed in Cyprus at the rate of 5% for amount that excess €3,420.
Dividents and interest are exempt from Cyprus income tax and apply only to Special Defense Contribution in case of domiciled tax resident.
No capital gains tax applies for the sale of immovable property located outside of Cyprus.
No inheritance tax applies, nor wealth tax.
The Non-Domicile status for tax purposes.
The non-domicile status in Cyprus is the “crown jewel” of the local tax system. It is specifically designed to attract foreign talent and investors.
Even if you become a tax resident, you are considered “non-domiciled” if you were not born in Cyprus (and haven’t lived here for 17 of the last 20 years). This status grants you an almost total exemption from taxes on your “passive” income—meaning your dividends and interest are yours to keep.
Special Defense Contribution tax.
SDC applies on dividends , rental income and interest. As SDC tax does not apply in the case of Cyprus tax resident individuals who are non-domiciled in Cyprus, dividend and interest earned by such persons will only be taxed in Cyprus with the General Health System Tax at 2.65%.
Who can apply for Non-Dom status?
Any foreign Cyprus resident can benefit from the Non-Dom system since the law doesn’t impose any financial threshold or distinctions for EU and third-country nationals.
Your Path to Relocation
- Company Formation in Cyprus: Setting up the right corporate structure to support your residency.
- Non-Dom Applications: Handling all paperwork with the Cyprus Tax Department.
- Ongoing Compliance: Ensuring your income tax in Cyprus and corporate filings remain fully optimized and compliant.