What is Non-Dom Status in Cyprus?
Cyprus operates a Special Defence Contribution (SDC) — a tax on dividend income, interest and rental income received by Cyprus tax residents. The standard rate is 17% on dividends and 30% on interest. Non-domiciled Cyprus tax residents are completely exempt from SDC.
This makes non-dom status extremely valuable for entrepreneurs, investors and high-net-worth individuals who earn significant dividend or investment income.
Who Qualifies for Non-Dom Status?
You qualify as non-domiciled in Cyprus if:
- You were not born in Cyprus, or
- You have not been a Cyprus tax resident for 17 out of the last 20 years
Most expats and international entrepreneurs qualify easily under the first condition. Non-dom status applies for 17 years from the date you become a Cyprus tax resident.
The Tax Residency Requirement
To benefit from non-dom status, you must first be a Cyprus tax resident. This means either:
- Spending more than 183 days per year in Cyprus, or
- Meeting the 60-day rule: spending at least 60 days in Cyprus, not being a tax resident elsewhere, having business interests in Cyprus, and maintaining a permanent home here
The 60-day rule is particularly useful for internationally mobile individuals who don't want to base themselves full-time in any single country.
What Tax Do Non-Doms Actually Pay?
- SDC on dividends: 0% (vs 17% for domiciled residents)
- SDC on interest: 0% (vs 30% for domiciled residents)
- Income tax: Standard Cyprus income tax applies (0% up to €19,500, progressive up to 35%)
- Capital gains tax: Only on Cyprus-situated immovable property (20%)
- Corporation tax: 12.5% on company profits (same as domiciled)
How to Apply for Non-Dom Status
Non-dom status is not automatically granted — you need to apply through the Cyprus Tax Department. The application is straightforward and requires proof of non-Cypriot origin or confirmation that you haven't been a Cyprus tax resident for 17 of the last 20 years.
Work with a Cyprus-registered tax advisor to ensure your application is structured correctly and you maintain the right documentation.