a block of flats The Cyprus Non-Domiciled Tax Residence Program offers significant tax benefits to non-domiciled individuals who establish economic ties with the country. Under this regime, Non-doms benefit from zero taxes on dividends, interest, and capital gains for 17 years. This makes Cyprus a top choice for entrepreneurs, investors, and professionals looking to reduce their tax burden.

Cyprus offers a business-friendly environment with no wealth tax, inheritance tax, or taxation on foreign income. It also has one of Europe’s lowest corporate tax rates at 12.5%. Beyond tax benefits, Cyprus provides sunny weather, a high quality of life, and a strategic location within the EU.

If you are considering non domicile status, this guide covers everything you need to know from eligibility to the application process so you can fully enjoy the non domicile  tax benefits in Cyprus.

What is Cyprus Non-Domiciled Tax Residence?

The Cyprus Non-Domiciled (Non-Dom) program is a special tax plan that offers major tax benefits to people who live in Cyprus but are not considered “domiciled” there. This program is designed to attract foreign entrepreneurs, business owners, and wealthy individuals to move to Cyprus and bring their businesses and investments and help the country grow economically.

Who can apply?

  • Tax residents of Cyprus who spend at least 60 days a year in the country.
  • People who haven’t been tax residents of Cyprus for 17 out of the last 20 years.
  • Individuals who don’t have a Cyprus domicile of origin unless they have a domicile of choice in another country.
  • Applicants who are not tax residents anywhere else and don’t plan to be.

Requirements for the Cyprus Non-Domiciled Tax Residence

If you become a tax resident of Cyprus, you can qualify as a non-domiciled tax resident. There are two ways to become a tax resident:

  • Spend 183 days in Cyprus to become a tax resident.
  • Spend 60 days in Cyprus to become a tax resident.

To qualify for the 60-day rule, you must also:

  • Have a permanent home in Cyprus (either owned or rented).
  • Not live in any other country for more than 183 days in a tax year, and not be a tax resident anywhere else.
  • Do business in Cyprus, such as working, being employed, or holding a position (like a director) in a Cyprus company. A common way to do this is by starting your own company and having an employment contract.

GCS-ICONS-25The 183-Day Rule

To qualify as a Cyprus tax resident, an individual must spend at least 183 days in Cyprus within a single tax year (January 1st to December 31st). Those who stay for less than 183 days are considered non-tax residents, which may exempt them from certain Cyprus taxes for non-residents on foreign income.

Exception: If you start your “first employment” in Cyprus after January 1, 2022, and your salary is over 55,000, you can receive a 50% tax exemption. To qualify, you must not have been a resident of Cyprus for 15 consecutive years before starting your job. The exemption applies to individuals who have not worked in Cyprus (for either a local or foreign employer) during that 15-year period. This exemption can be used only once in your lifetime and lasts for 17 years.

How to Calculate the Days for Tax Residency

  • The departure day from Cyprus counts as a day outside Cyprus.
  • The arrival day in Cyprus counts as a day in Cyprus.
  • If you arrive and depart on the same day, it counts as one day in Cyprus.
  • If you depart and return on the same day, it counts as one day outside Cyprus.

What are Non Domiciled Individuals?

Non domiciled individuals (Non-Doms) are people who live in a country but are not legally considered permanent residents for tax purposes. This status is often granted to expatriates or foreign nationals who maintain economic ties elsewhere and do not intend to settle permanently. Many countries offer Non-Dom tax regimes, allowing these individuals to benefit from reduced or zero taxation on foreign income, dividends, and capital gains.

Benefits of Cyprus Non-Dom Tax Residence

These are the several benefits that come with the non dom Cyprus program: 

  • You can live nomadically and enjoy the freedom to travel while benefiting from Cyprus’ tax regime.
  • By becoming a Cyprus non-dom, you will have a presence in the European Union.
  • You can live in an EU country while paying very low taxes.
  • The Cyprus non-dom tax regime lasts for 17 years, offering long-term benefits.
  • Cyprus does not impose inheritance tax, estate duty, wealth tax, or gift tax.
  • Cyprus’s corporate tax rate is just 12.5%, which is lower than in many other EU countries.
  • Cyprus has extensive double tax treaties, helping to avoid double taxation.
  • You will not pay capital gains tax in Cyprus except when selling immovable property within the country.
  • There is an exemption on SDC tax for dividends, rent, and interest income.
  • You can earn a salary of up to EUR 19,500 per year tax-free.
  • Pension income is taxed at a flat rate of just 5%.
  • If you work for a non-resident employer for over 90 days in a fiscal year, you will receive 100% tax relief on the salaries paid for services outside Cyprus.

To learn more about the Cyprus Digital Nomad Visa

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Documents for the Cyprus Non-Dom program

To qualify the Cyprus non dom program, you need to gather these documents. 

  1. Valid passport: You must provide a copy of your valid passport, which should be valid for at least six months beyond your intended stay in Cyprus.
  2. Proof of residency: You must show proof of your permanent residence in Cyprus. This can be a rental agreement or a property ownership certificate.
  3. Tax registration forms: You must complete the necessary forms to register with the Cyprus Tax Authorities and obtain a Tax Identification Number (TIN).
  4. Residency permit: You must obtain a residency permit from the Civil Registry and Migration Department to confirm your legal residency status in Cyprus.
  5. Social insurance payments: You must provide evidence of your contributions to the Cyprus social insurance system. This can include pay slips or statements from your employer.
  6. Source of income: You must provide documents showing your income sources. These can include bank statements, investment certificates, employment contracts, and business registration documents.
  7. Non-Cypriot domicile declaration: You must submit a declaration confirming that neither you nor your parents were born in Cyprus. Additional supporting documents may be required.
  8. Tax residency certificate: If applicable, you may need to provide a tax residency certificate from your home country to confirm your tax status.

Cyprus Non-Dom Tax Residency Application Process

  1. Meet Residency Requirements: To qualify for the Non-Dom status, you must first meet the criteria for becoming a tax resident of Cyprus. This can be through either the 183-day rule or the 60-day rule which requires additional conditions, such as maintaining a permanent home in Cyprus, not being a tax resident anywhere else, and doing business in Cyprus.You can also gain residency through programs like the Cyprus Golden Visa which directly leads to permanent residency or the Cyprus Digital Nomad Visa which first gets you a residence permit that is valid for one year but is renewable. Permanent residency will be possible after five years of legal residency.
  2. Register with Tax Authorities: Register with the Cyprus Tax Authorities to get your Tax Identification Number (TIN) and tax residency certificate
  3. Establish Tax Residency: Meet the requirements to establish tax residency in Cyprus by staying for 60 days or 183 days.
  4. Gather Required Documents: Collect all the necessary documents needed for your application.
  5. Submit Non-Domicile Declaration: Complete and submit a Non-Domicile Declaration to the Cyprus tax authorities, along with evidence that your domicile is outside Cyprus.
  6. Wait for Approval: After submitting your application, wait for approval. Once approved, you will receive your Non-Dom Certificate.
  7. Application fee: There is an application fee of €20 (exact amount in cash) that must be paid when submitting the Non-Dom application.

To learn more about the Cyprus Golden Visa

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How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently asked Questions about the Cyprus Non Domiciled Tax Residence

What is the Cyprus Non Domiciled Tax Residence Program?

The Cyprus Non Domiciled Tax Residence Program offers significant tax benefits to individuals who become Cyprus tax residents but are not domiciled there. Non domiciled individuals are exempt from taxes on dividends, interest, and capital gains, making Cyprus an attractive option for entrepreneurs and investors looking to reduce their tax burden while maintaining economic ties to the country.

Who qualifies for non domiciled status in Cyprus?

To qualify for non domiciled status in Cyprus, an individual must be a tax resident who spends at least 60 days per year in the country. They must not have been a Cyprus tax resident for 17 out of the last 20 years and should not have a Cyprus domicile of origin, unless they have established a domicile of choice elsewhere. Additionally, they must not be a tax resident in any other country.

How can I become a tax resident in Cyprus?

You can qualify by spending 183 days in Cyprus per year or under the 60-day rule, which requires having a permanent home, economic ties, and no tax residency elsewhere.

What are the tax benefits for Non Doms in Cyprus?

Non-doms benefit from zero tax on dividends, interest, and capital gains for 17 years. Cyprus also has no wealth tax, inheritance tax, or tax on foreign income.

Can I work or run a business in Cyprus as a Non dom?

Yes. Many Non doms establish economic ties by starting a business, becoming a company director, or working in Cyprus while enjoying the program’s tax benefits.

What is the 60 day rule for Cyprus tax residency?

It allows individuals to become tax residents by spending just 60 days per year in Cyprus, provided they own or rent a home, have business ties, and are not tax residents elsewhere.

Is there an application process for non domiciled status?

Yes. You must register as a tax resident in Cyprus and submit a declaration to the Cyprus Tax Department confirming your non domiciled status.

How long can I keep my non domiciled status?

You can benefit from the Non Dom tax advantages for 17 years, after which standard Cyprus tax rules apply.

Can I live in another country and keep my Cyprus Non Dom status?

If you qualify under the 183 day rule, you must spend over half the year in Cyprus. Under the 60-day rule, you must not spend more than 183 days in another country or be tax resident elsewhere.