Non-Domicile Status

The Non-Domicile status for tax purposes.

Foreigners who relocate their personal tax residency to Cyprus will be considered non-domiciled for up to 17 years. This status provides an exemption from the Special Defence Contribution (SDC) tax, which typically applies to passive income such as dividends, rental income, and interest.

TAX EXEMPTION

Non-domiciled individuals who become tax residents of Cyprus are exempt from SDC on dividends and interest and rental income. They are obligated to contribute to the General Health System (GeSY) at a rate of 2.65%, with a maximum cap of 4,770 EUR as payable contributions.

Key Benefits of Non-Dom Status

Dividend Income

Exempt from the 17% Special Defence Contribution Tax (SDC) and income tax.

Interest Income

Exempt from the 30% SDC and income tax.

Rental Income

Subject to income tax at normal rates with an 80% taxable basis, exempt from SDC.

Non-Dom CRITERIA

Any foreigner who becomes a Tax Resident of Cyprus can apply for the Non-Dom tax status. The status does not require a financial threshold and makes no distinction between EU and third-country nationals.

Domicile of origin, place of birth, is not Cyprus.
The individual was not a tax resident In the Republic for a period of at least 20 consecutive years prior to the tax year in question; or
Irrespective of the domicile of origin, an individual who remains a tax resident of Cyprus for a period of at least 17 years out of the last 20 years prior to the tax year in question, shall be deemed as domiciled for SDC purposes.

Non-Dom eligibility test

1. Has the individual been Cyprus tax resident for 17 years or more out of the last 20 years prior to the current tax year of assessment?

No, then move to question 2.
Yes, then the individual is Domiciled in Cyprus

2. Does the individual have a Cyprus domicile of origin?

Yes, move to question 3.
No, then the individual is considered as Non-Dom.

3. Has the individual been tax resident outside of Cyprus for the entire 20 consecutive years from 1995 until 2014?

Yes, then the individual is considered a Non-Dom.
No, move onto question 4.

4. Has the individual acquire and still maintains a domiciled of choice outside Cyprus?

Yes, move to question 5.
No, the individual is domiciled in Cyprus.

5. Has the individual been a non-Cyprus Tax resident for any 20 years consecutive period?

Yes, then the individual is considered a Non-Dom.
No, then individual is considered as domiciled in Cyprus.

Become a Cyprus Tax resident to acquire the Non-Domicile status.

Cyprus tax residency is widely used from professionals, entrepreneurs, CEO’s, aviation professionals, athletes and artists that are constantly on the move. Cyprus tax residency gives the opportunity to any individual to benefit from Cyprus Income tax on his worldwide income.

WHY TAX RESIDENT?

No need for a physical presence in the country
Minimise your income tax on your worldwide earnings
50% tax exemption on remunerations arising from Cyprus employment
Multiple Tax deductions on income