Maximize Your Wealth and Minimize Your Tax Burden with Cyprus’s Favorable Non-Dom Status
Why Choose Cyprus for Tax Residency?
Cyprus offers a unique tax regime that combines favorable Non-Domicile (Non-Dom) status with flexible tax residency rules, enabling high-net-worth individuals, global entrepreneurs, and international professionals to optimize their wealth efficiently. Whether you are seeking to reduce tax on your worldwide income or relocate to enjoy a high-quality European lifestyle, Cyprus is a premier choice.
By leveraging the 183-day rule or the innovative 60-day rule, you can secure tax residency in Cyprus while enjoying unparalleled benefits, such as zero tax on foreign-sourced dividends and interest income for up to 17 years under the Non-Dom framework.
Key Benefits of Cyprus Non-Dom Tax Residency
Zero Tax on Foreign Dividends and Interest
As a Cyprus tax resident with Non-Dom status, you benefit from zero Special Defence Contribution (SDC) on dividends and interest, regardless of their origin.
17-Year Non-Dom Advantage
Non-Domiciled individuals retain their tax-free dividend and interest status for up to 17 years from the date they become Cyprus tax residents.
Low Personal Income Tax Rate
Cyprus features one of the most competitive personal income tax regimes in Europe:
0% tax on annual income up to €19,500
Progressive rates capped at 35% for income above €60,000.
Attractive Employment Incentives
New Cyprus tax residents employed locally benefit from:
50% income tax exemption for salaries exceeding €55,000 annually (valid for 17 years).
20% exemption or €8,550 (whichever is lower) for annual salaries below €55,000 (valid for 5 years).
No Wealth, Inheritance, or Gift Taxes
Cyprus imposes no wealth tax, inheritance tax, or gift tax, ensuring long-term preservation of family wealth.
Capital Gains Tax Exemptions
No tax on capital gains from the disposal of shares, bonds, and securities.
Exceptions apply only to immovable property located in Cyprus.
General Healthcare System (GHS) Contribution Cap
Contributions to the Cyprus General Healthcare System are limited to 2.65% of income, capped at €4,770 annually (on income up to €180,000).
Flexible Residency Options
Cyprus tax residency can be obtained under:
183-day rule: Spend more than 183 days in Cyprus in a calendar year.
60-day rule: Spend at least 60 days in Cyprus and meet specific economic ties, such as employment, business activity, or ownership of a Cyprus-registered company.
How to Qualify for Cyprus Tax Residency
Cyprus companies can be structured to meet the unique needs of your business.
1. The 183-Day Rule
The 183-Day Rule establishes tax residency for individuals present in a country.
- Spend more than 183 days in Cyprus within a calendar year.
- Days are counted as follows:
- Day of arrival in Cyprus = 1 day of residence.
- Day of departure = 1 day outside Cyprus.
- Same-day arrival and departure = 1 day of residence.
2. The 60-Day Rule
Introduced for greater flexibility, this rule applies if you:
- Spend at least 60 days in Cyprus within a calendar year.
- Maintain personal or economic ties to Cyprus:
- Employment contract or business activity in Cyprus.
- Ownership or rental of a residence.
- Directorship in a Cyprus-registered company.
- Do not reside in another country for more than 183 days.
Are not considered a tax resident in any other jurisdiction.
Who Should Apply for Cyprus Non-Dom Status?
By combining Non-Dom status with Cyprus Tax Residency, individuals can significantly reduce their overall tax exposure while securing a strategic presence in the EU.
- High-net-worth individuals and families seeking tax-efficient wealth management.
- Entrepreneurs with international income streams.
- Directors and shareholders of Cyprus-based companies.
- Professionals relocating under Business Relocation to Cyprus.
- Digital nomads and remote workers looking for a tax-friendly EU base.
Practical Use Cases
Relocating or expanding your business to Cyprus goes beyond tax benefits. Companies can also take advantage of:
Frequently Asked Questions
1. What documents are required to apply for Cyprus Tax Residency?
- Passport copy.
- Proof of residential address (rental agreement or ownership deed).
- Evidence of sufficient income (e.g., bank statements).
- Employment contract or business activity confirmation.
- Health insurance.
2. Can I apply for tax residency remotely?
Yes, most of the process can be completed without being physically present in Cyprus. Our team provides full support to ensure a smooth application process.
3. How long does it take to obtain Cyprus tax residency?
Applications under the 183-day rule or 60-day rule can be processed within a few weeks once all required documents are submitted.
4. Do I need to pay tax on foreign income?
No. Non-Dom residents do not pay taxes on foreign dividends, interest, or capital gains, provided they are not Cyprus-sourced.
5. How long does the Non-Dom status last?
The Non-Dom benefits apply for 17 years from the date of becoming a Cyprus tax resident.
6. Can my family members also benefit?
Yes, family members relocating to Cyprus can also benefit from favorable tax treatment and residency rules.
Start Your Journey to Tax Efficiency
Take the first step towards securing your financial future and reducing your tax liabilities. Our team of licensed experts will guide you every step of the way.
