Non-Dom Tax Residency Regime – THE ONLINE CYPRUS PROPERTY MARKETPLACE – SELL IT – BUY IT – RENT IT

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Cyprus Non-Dom Tax Residency Regime

Ability to Obtain Permanent Residency with Property Investment of from only 300k + vat

Free Healthcare for PR Holders (GESY access)

Zero Property Tax

12.5% Corporate Tax - Among the Lowest in the EU

5% on Pension, There is a Flat Tax Rate of 5% on Pension Income for Retirees

No Inheritance Tax

More benefits

Relocating under the non-dom lifestyle in Cyprus

Cyprus’s non-domicile regime makes it one of Europe’s most tax-friendly countries for passive income

What is Non-Dom Status in Cyprus?

Non-domicile (non-dom) status in Cyprus is a tax residency classification that offers significant tax benefits to individuals who are tax residents in Cyprus but not domiciled there. This status is particularly attractive to high-net-worth individuals, entrepreneurs, and international business executives seeking to optimize their tax obligations.

Cyprus Non Dom Status and It’s Benefits

Relocating to Cyprus and obtaining Non-Domicile (Non-Dom) status can be a highly strategic move, particularly from a tax perspective, as it provides significant fiscal advantages. Thanks to its beneficial tax framework, Cyprus is a preferred choice for expatriates, investors, and business professionals. This overview explains how to acquire Non-Dom status in Cyprus and sets out the key financial and legal benefits it offers.

Exemption from Tax on Dividends and Interest:

Non-Doms are not subject to the Special Defence Contribution (SDC), meaning they are exempt from paying taxes on dividends, interest income, and rental income. This is particularly advantageous for investors or individuals with significant savings and passive income sources.

Favorable Income Tax Treatment:

Cyprus operates a progressive income tax system, with rates up to 35% for income over €60,000. However, Non-Dom individuals benefit from substantial income tax exemptions. For instance, employment income exceeding €100,000 per year qualifies for a 50% tax exemption for the first 10 years of employment in Cyprus.

No Wealth or Inheritance Tax:

Cyprus does not impose wealth or inheritance taxes, making it an attractive jurisdiction for estate planning and wealth management.

Low Corporate Tax Rate:

For those setting up a company in Cyprus, the corporate tax rate is 12.5%, one of the lowest within the European Union. When combined with the Non-Dom tax benefits, Cyprus becomes a particularly attractive destination for establishing business operations.

Capital Gains Tax Relief:

Non-Dom residents are exempt from paying capital gains tax on the sale or disposal of non-Cyprus assets. This is ideal for individuals with investments held internationally.

Eligibility Requirements for Non-Dom Status in Cyprus

Non-Domicile History:

The applicant must not have been a tax resident of Cyprus for 17 out of the last 20 years prior to the application.

Tax Residency Requirement:

The individual must establish tax residency in Cyprus, which generally requires:

Spending at least 183 days in Cyprus within a calendar year, or alternatively,
Satisfying the “60-day rule,” which requires:
- Spending at least 60 days in Cyprus within the tax year;
- Not residing in any other country for more than 183 days during the same year;
- Maintaining a permanent residence in Cyprus (either owned or rented);
- Engaging in business activities, employment, or holding a directorship in a Cyprus-based company.

Even more reasons why to invest in Cyprus real estate

Steps to Obtain Non-Dom Status

Relocate to Cyprus:

The first step is to physically relocate and establish residency in Cyprus. To do so, you must either purchase or lease property that will serve as your permanent residence.

Register as a Tax Resident:

Upon relocation, you must register with the Cyprus Tax Department to become a tax resident. This process involves obtaining a Tax Identification Number (TIN) and submitting documentation proving your residency and business or employment activities in Cyprus.

Open a Bank Account:

To facilitate financial activities, including receiving income and conducting business transactions, you will need to open a local bank account in Cyprus. This also serves as proof of your economic ties to the country.

Apply for Non-Dom Status:

Once registered as a tax resident, you can apply for Non-Dom status through the Tax Department. This involves completing the necessary forms and providing supporting documentation, such as proof of residency and business activities.

Disclaimer

This article is provided for general information purposes only and does not constitute legal or tax advice. Always consult a licensed tax advisor for personalised guidance.