Cyprus Non-Dom
Regime Explained
The Cyprus non-domicile regime can offer significant exemptions on dividend and interest income for individuals who relocate to Cyprus. Here is how it works, who qualifies, and what the limits are.
The Non-Domicile Regime in Cyprus
Cyprus charges Special Defence Contribution (SDC) on dividend and interest income received by domiciled tax residents. Non-doms are exempt.
Dividend income
Dividends received from Cyprus or foreign companies are exempt from Special Defence Contribution (SDC) for non-doms
Interest income
Interest received (e.g. from bank deposits or loans) is exempt from SDC for non-doms
Capital gains
Capital gains from disposal of securities (shares, bonds, etc.) are exempt in Cyprus — regardless of non-dom status
Disclaimer: Non-dom benefits depend on your individual circumstances, domicile history, and tax position in other countries. This guide is for general information only — always obtain a personalised assessment before making decisions.
Who Qualifies as a Cyprus Non-Dom?
- You must be a Cyprus tax resident (183-day or 60-day rule)
- You must not have been a Cyprus tax resident for more than 17 out of the last 20 years
- You must not be Cyprus-domiciled by origin (i.e. you were not born in Cyprus to Cypriot parents)
- You must not have acquired a domicile of choice in Cyprus
Common Non-Dom Questions
How long does the non-dom benefit last?
Up to 17 years from first becoming a Cyprus tax resident, provided you do not acquire a Cyprus domicile of choice during that period.
What is "Special Defence Contribution" (SDC)?
SDC is a Cyprus tax applied to dividends and interest income received by Cyprus tax residents who are Cyprus-domiciled. Non-doms are exempt from SDC, meaning qualifying dividend and interest income is not taxed at the personal level in Cyprus.
Does non-dom apply to salary income?
No. Employment income is subject to Cyprus income tax at standard progressive rates (0–35%) regardless of non-dom status. Non-dom only exempts SDC on dividends and interest.
Can I combine non-dom with the IP Box regime?
Yes. If your Cyprus company benefits from the IP Box regime at the corporate level, and you receive dividends from that company, those dividends are exempt from SDC as a non-dom. This makes Cyprus particularly attractive for IP-holding businesses.
Do I need to actively apply for non-dom status?
Non-dom is a status, not a formal application. If you satisfy the conditions, you are automatically a non-dom for SDC purposes. However, you should inform your tax advisor and document your position correctly when filing your annual tax return.
Find Out If You Qualify
Book a free consultation. We'll assess your domicile status, tax residency position, and whether the non-dom regime applies to your situation.
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