Quick Answer
Non-Dom residents in Cyprus pay 0% income tax and 0% Special Defence Contribution on dividends - only GESY at 2.65% applies, capped at EUR 4,770 per year. This gives an effective rate of approximately 2.65%. Domiciled residents pay 5% SDC under the 2026 reform, reduced from 17%. Corporate tax of 15% applies at company level before distribution.
Cyprus Dividend Tax Calculator [2026]
Under Cyprus Non-Dom status, dividend income is completely exempt from income tax and Special Defence Contribution (SDC). Only GESY (2.65%, capped at EUR 4,770/year) applies, giving an effective rate of approximately 2.65% for most dividend recipients. For domiciled residents, SDC was reduced from 17% to 5% under the December 2025 tax reform, effective from 2026 profits.
Free, no commitment
Moving to Cyprus or opening a company?
Tell us your situation and we'll connect you with our specialist expat advisory in Cyprus: Non-Dom tax, company setup and residency, done for you. Free consultation, no commitment.
How are dividends taxed in Cyprus for Non-Dom residents?
Non-Dom residents pay 0% income tax and 0% Special Defence Contribution on dividends. Only GESY (2.65%) applies, capped at EUR 4,770 per year. This gives an effective rate of approximately 2-3% on dividend income.
What changed for dividend tax in Cyprus in 2026?
The December 2025 tax reform reduced SDC on dividends for domiciled residents from 17% to 5%, effective from 2026. Non-Dom residents continue to pay 0% SDC.
What is the Non-Dom dividend effective rate?
The overall effective tax rate for a Non-Dom receiving dividends from a Cyprus company is approximately 5%: 15% corporate tax at company level, with no further tax at the individual level except 2.65% GESY.
Can foreign-sourced dividends be taxed differently?
Foreign dividends received by a Non-Dom are also exempt from SDC and income tax. GESY (2.65%) applies. Some double tax treaties may affect withholding taxes at source - check the relevant treaty.
How long do I need Non-Dom status to benefit?
Non-Dom status in Cyprus lasts up to 17 years (not a Cyprus domicile for 20 of the past 35 years). During this period, dividends and passive income are effectively untaxed at the individual level.
Free, no commitment
Moving to Cyprus or opening a company?
Tell us your situation and we'll connect you with our specialist expat advisory in Cyprus: Non-Dom tax, company setup and residency, done for you. Free consultation, no commitment.