Non-Domicile Tax Residency Status in Cyprus
Tax optimization in Cyprus

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Non-Domicile Tax Residence Status in Cyprus

The Cyprus regime – Cyprus Non Domicile Tax (Non-Dom) is considered one of the most attractive tax regimes in the European Union and allows foreign citizens to minimize their tax liabilities.

This preferential tax regime also aims to provide greater opportunities for individuals to place their investments in a more stable and secure environment with minimal tax liabilities.

What does Non-Domicile status mean in Cyprus?

Non-Domicile status is a special tax regime that effectively reduces your tax liability for individuals residing in Cyprus for at least 60 days in each tax year and having close personal ties to the country.

According to the non-dom concept, foreigners who decide to make Cyprus their personal tax residence will be able to enjoy tax benefits and benefits for 17 years after moving to the island and obtaining tax resident status.

How to optimize taxes in Cyprus with Non-Domicile status?

Non-dom persons are exempt from taxation in Cyprus in respect of the following sources of income:

interest
dividends received from a company registered anywhere in the world
capital gains (other than capital gains arising from the sale of immovable property in Cyprus)
Special Tax Contribution for Defense Purposes is not paid.

Other tax advantages of Cyprus

Briefly about the tax advantages of Cyprus for individuals and companies:

Low personal income tax rates: Personal income tax rates are low and range from 0% to 35%. What’s especially attractive is that the first €19,500 of income is tax-free.
50% income tax exemption for highly compensated employees: Individuals with an annual remuneration in Cyprus of more than €55,000 can benefit from a 50% tax exemption on their income
No wealth and gift tax
No annual property tax
Cyprus companies are subject to income tax at 12.5%, which is one of the lowest in Europe.
A special IP-box tax regime is available, reducing the corporate tax rate to only 2.5%.

Obtaining Non-Domicile tax resident status in Cyprus

As a general rule, you can become a tax resident by staying in Cyprus for at least 183 days in a tax year.
It is also possible for individuals to become a tax resident of Cyprus under the 60 Day Rule, subject to meeting certain requirements during the tax year.

How to obtain Cyprus tax resident status in 60 days?

Stay in Cyprus for at least 60 days.
The applicant must carry out a business activity, be employed or be a director of a company registered in Cyprus (with mandatory receipt of salary) at any time during the tax year.
It is necessary to have a company bank account and a personal account of the beneficiary.
The applicant must have a place of residence in Cyprus, whether owned or leased. In the case of renting, the residential premises must be rented for 12 months.
The person must not have resided for more than 183 days in any other country during a given tax year and is not a tax resident of any other country.

In summary, the key features of the Non-Domicile mode:
✓ Tax benefits are valid for 17 years
✓ To become a tax resident you only need 60 days of presence in Cyprus
✓ 0% tax on interest, dividends and capital gains (except capital gains realized from the sale of immovable property in Cyprus)

Optimizing taxes in Cyprus requires competent tax planning.
Our Cypriot lawyers and tax advisors offer expertise and assistance in developing the most beneficial strategies for businesses and individuals.

Contact us and we will be glad to see you in our office in Larnaca!

TAX CONSULTATION IN CYPRUS

Non-Domiciled Tax Residency Status in Cyprus - FAQ

Who can use the Non-Dom program in Cyprus?

Any foreign citizen who meets the necessary requirements can take advantage of the preferential tax regime in Cyprus.

What does Non-Domicile status mean in Cyprus?

People who are tax residents of Cyprus and have Non-Domicile status are exempt from paying taxes on interest, dividends, capital gains (except for the sale of immovable property in Cyprus). The Special Defense Contribution is also not paid.

Can persons with Non-Domicile status conduct business in Cyprus?

Yes, persons with Non-Domicile status can conduct business in Cyprus.

Also, to obtain tax resident status under the 60-day Rule, the applicant must carry out entrepreneurial activities, be employed or be the director of a company registered in Cyprus with the obligatory receipt of wages.

Article author

Anastasia Taran Head of Corporate Services
Ukraine

In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes i...

family and corporate immigration solutions.
establishing a business in Europe.
personal and corporate taxation in Europe.
opening accounts in European banks.
obtaining a tax resident status.

Why clients choose Feod Group

Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.

The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.

Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.

We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.