Cyprus Non-Dom status is a tax classification for individuals who become Cyprus tax residents but are not domiciled in Cyprus.

It allows non-domiciled residents to receive dividend and passive interest income free from Special Defence Contribution (SDC), making these income streams effectively tax-free for up to 17 years.

To qualify, you must become a Cyprus tax resident under either the 183-day rule or the 60-day rule, and you must not have been a Cyprus tax resident for at least 17 of the last 20 years.

You must also not have a domicile of origin in Cyprus. Non-Dom status is obtained by submitting a declaration to the Cyprus Tax Department.

The 60-day rule allows individuals to become Cyprus tax residents by spending at least 60 days per year in Cyprus, provided they do not spend more than 183 days in any other single country.

To qualify, individuals must also maintain a permanent home in Cyprus and have business activity, employment, or a directorship in a Cyprus tax-resident company, making it one of the most flexible tax residency regimes in Europe.

Cyprus Non-Doms benefit from 0% tax on dividends and passive interest income, as these are exempt from Special Defence Contribution.

A 2.65% General Health System (GHS) contribution applies to such income up to €180,000, capped at €4,770 per year.

Cyprus also has no inheritance tax, no wealth tax, and no gift tax. Profits from the disposal of securities are generally exempt from tax, although exceptions may apply, particularly in relation to Cyprus immovable property.

Employment income exercised outside Cyprus for more than 90 days per year may be exempt from Cyprus income tax, subject to the relevant conditions.

Employment income in Cyprus is taxed at progressive rates, with a 50% tax exemption available for eligible individuals earning over €55,000 per year, significantly reducing the effective tax rate.

The exemption from Special Defence Contribution (SDC) generally applies for 17 years from the date an individual becomes a Cyprus tax resident.

Recent tax reforms introduced the possibility of extending these benefits for additional periods, subject to conditions and a prescribed contribution.

Cyprus is a member of the European Union and applies EU tax directives and OECD-aligned frameworks.

The Cyprus tax system has been updated through recent reforms to align with international standards, including developments related to OECD Pillar Two, while maintaining a competitive tax environment for international individuals.

A Cyprus company is not required to obtain Non-Dom status.

However, if you are using the 60-day rule to become a Cyprus tax resident, you must have business activity, employment, or a directorship in a Cyprus tax-resident company. Under the 183-day rule, only physical presence is required.

Key changes introduced in 2026 include an increase in corporate tax to 15%, an increase in the tax-free income threshold to €22,000, abolition of Special Defence Contribution on rental income, and simplification of the 60-day tax residency rule.

The Cyprus Non-Dom regime continues to apply, with additional flexibility introduced for extending benefits beyond the standard 17-year period.

Following the abolition of the UK Non-Dom regime in April 2025, Cyprus has become a leading alternative for international taxpayers.

Cyprus offers 0% tax on dividends and interest without a remittance basis, a clear duration framework, flexible residency options including the 60-day rule, and no inheritance, wealth, or gift taxes, all within an EU jurisdiction.

Once Cyprus tax residency is established, Non-Dom status is obtained through a declaration submitted to the Tax Department.

The overall timeline depends on individual circumstances, including residency setup, housing, and any business or structuring requirements.