Non-Domicile Status
The Non-Domicile status for tax purposes.
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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
No, then move to question 2.
Yes, then the individual is Domiciled in Cyprus
Yes, move to question 3.
No, then the individual is considered as Non-Dom.
Yes, then the individual is considered a Non-Dom.
No, move onto question 4.
Yes, move to question 5.
No, the individual is domiciled in Cyprus.
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.
- 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