Non-Dom Status in Cyprus: What It Is and Why It Matters

Yes, you declare your domicile status during tax registration. Non-Dom status is determined by your domicile of origin at that point, not through a separate application.

Yes, after 17 years of continuous tax residency in Cyprus, Non-Dom status automatically expires. You can also voluntarily end it by changing your domicile before the 17-year period ends.

No. Non-Dom exempts you from SDC on foreign-sourced investment income only, not salary. You pay full SDC on employment income regardless of Non-Dom status. Non-Dom provides no tax relief on wages or salaries earned in Cyprus or abroad.dividends, and interest income. Employment income remains subject to normal PAYE income tax rates.

Non-Dom status is available to both EU and non-EU citizens. Qualification depends on domicile of origin, not nationality or EU citizenship. Any foreigner not born in Cyprus can qualify.

Non-Dom registration costs approximately EUR 2,500-3,500 in professional fees, plus EUR 500-1,000 for government filings and documentation. The full tax residency setup including immigration advice runs EUR 4,000-6,000 total depending on complexity and service provider.yellow slip, TIN, Non-Dom declaration, and health insurance) costs approximately 2,200 EUR through a professional advisor.

Non-Domiciled (Non-Dom) status in Cyprus provides an effective tax rate of approximately 5% on total income. Dividends face 2.65% GHS only, with zero SDC. Interest income is SDC-exempt. Salary income uses standard brackets (0% to 22,000 EUR). Corporate profits are taxed at 15%. This regime applies to qualifying foreign residents and offers significant EU tax advantages for eligible individuals.dividend tax guide for detailed calculations.

Cyprus Non-Dom status requires no minimum income or wealth requirement, unlike Portugal's ended NHR, Italy's flat tax (EUR 200,000 minimum), or Greece's regime (EUR 100,000 minimum). It's automatic for most foreigners, free to obtain, and lasts up to 17 years. Any foreigner not previously domiciled in Cyprus qualifies for preferential tax rates under this regime.

There is no separate application for Non-Dom status. You obtain it automatically when you register as a Cyprus tax resident and meet the domicile requirements. The key step is registering at the Tax Department and receiving your TIC (Tax Identification Number), which typically takes 2 to 4 weeks.

No, Cyprus Non-Dom status only affects your Cyprus tax liability. Your home country tax obligations depend on that country's residency rules and its double tax treaty with Cyprus. Consult tax advisors in both jurisdictions before relocating to ensure compliance.

**Yes.** Cyprus Non-Dom residents pay no income tax or SDC on foreign company dividends, regardless of incorporation location. Only the 2.65% GHS contribution applies (capped at EUR 4,770 annually). This covers UK Ltd, US LLC, and all other foreign structures, making Cyprus ideal for existing business owners.

You can benefit from Cyprus Non-Dom status for a maximum of 17 consecutive years. After this period, you're deemed to have acquired domicile of choice in Cyprus and lose the exemption. This rarely affects most expats in practice.

Rental income in Cyprus is taxable under progressive rates (0% up to EUR 22,000, then up to 35%) for all residents, including Non-Doms. The 3% SDC on rental income was abolished from 1 January 2026. GHS contributions of 2.65% apply on rental income up to the EUR 180,000 cap. Non-Dom status does not exempt rental income from taxation.

Your Non-Dom clock pauses when you leave Cyprus; the 17-year maximum only counts years as a tax resident. If you return, the domicile of origin test resets and you may re-qualify as Non-Dom, depending on your domicile history. Seek specialist advice before any exit.

No, 60 days alone is insufficient for Non-Dom status. You must spend at least 183 days in Cyprus during the tax year to establish tax residency and qualify for Non-Dom benefits. The 60-day rule applies only to other tax residency scenarios, not Non-Dom eligibility.

To use the 60-day rule you must: spend at least 60 days in Cyprus during the tax year, not be tax resident in any other country (i.e. not spend more than 183 days elsewhere), maintain a permanent home in Cyprus (owned or rented), and have a business or employment connection to Cyprus.

Once you are a Cyprus tax resident under either the 183-day or 60-day rule, you can apply for Non-Dom status if you have not been domiciled in Cyprus for at least 17 of the last 20 years.

No, you cannot combine Non-Dom status with the 50% salary exemption. Non-Dom residents are taxed on worldwide income at approximately 5% effective rate, while the 50% exemption applies only to regular residents. You must choose one regime: either Non-Dom status for all income, or regular residency with the 50% salary exemption on employment income only.

The 50% salary exemption applies to individuals who earn more than EUR 55,000 per year and were not tax residents of Cyprus in the 3 years prior to starting employment there. It exempts half of your employment income from personal income tax for up to 17 years.

Non-Dom status, on top of that, exempts you from the Special Defence Contribution (SDC) on dividends (17%) and interest (30%). So if you draw dividends from your Cyprus company in addition to a salary, you pay 0% SDC on those dividends.

The two benefits are independent and fully compatible. You can receive both simultaneously if you meet the conditions for each.

Non-dom status is not a separate application - it is determined automatically based on your domicile of origin and years of Cyprus tax residency. If neither parent was domiciled in Cyprus, your domicile of origin is not Cyprus, and you automatically qualify as non-domiciled for the first 17 years of Cyprus tax residency.

There is no separate form to submit. When you register as a Cyprus tax resident (TIC registration at the Tax Department), you declare your domicile status on your annual tax return (IR1). Your tax adviser will note your non-dom status so the SDC exemption on dividends and interest is correctly applied from year one.

These are two distinct legal concepts. Non-resident means you spend insufficient time in Cyprus to be a tax resident (under 60 days under the 60-day rule, or under 183 days under the standard rule). Non-residents pay Cyprus tax only on Cyprus-source income such as rental income from Cyprus property.

Non-domiciled means you are a Cyprus tax resident but your domicile of origin is not Cyprus. Non-doms pay Cyprus income tax on worldwide earned income but are exempt from SDC on dividends and interest, meaning dividends are effectively taxed only at 2.65% GESY. You must first be a Cyprus tax resident to benefit from non-dom status.