The Cyprus Non-Dom Regime, Explained

What is the non-dom regime?

If you become a Cyprus tax resident but are "non-domiciled", you're exempt from the Special Defence Contribution (SDC) on dividends, interest and rental income for up to 17 years. In practice, that means dividends and interest can be received free of that tax.

Cyprus also has no wealth tax or inheritance tax, and qualifying non-doms are exempt from SDC on dividends and interest. This can be relevant to investors, business owners and people living on passive income.

The headline benefits: 0% SDC on dividends & interest · valid up to 17 years · no wealth or inheritance tax · works alongside the 60-day residency rule.

Who qualifies?

The regime can apply to people who become Cyprus tax resident but are not domiciled or deemed domiciled in Cyprus. This often includes people relocating from abroad.

What's still taxed?

Employment and most other income remains subject to personal income tax on a progressive scale (with a tax-free band), and salaried roles attract social insurance and the General Healthcare System (GHS/GESY) contribution. The non-dom benefit specifically targets SDC on passive income. A capital-gains charge generally applies only to Cyprus-situated immovable property.

This is general information only and not tax advice. Domicile, deemed-domicile rules and rates are technical and change. A licensed Cyprus tax adviser confirms your position.

Frequently asked questions

How long does non-dom status last?
Up to 17 years within a 20-year period, after which you're treated as domiciled for these purposes.
Do I pay tax on dividends?
As a qualifying non-dom, dividends are exempt from the Special Defence Contribution; a small GHS contribution may apply up to a cap.
How do I become tax resident?
Via the 183-day rule or the 60-day rule, which has specific conditions.

Ask about non-dom status

Tell the assistant about your income and residency. It will outline the general non-dom framework and the points a tax adviser should confirm.