Cyprus Non-Dom Status:
0% Tax on Dividends
Cyprus Non-Domicile (Non-Dom) status exempts you from the Special Defence Contribution on dividends, interest, and rental income — for up to 17 years. It is one of Europe's most generous personal tax incentives, and it is fully codified in Cypriot law.
0%
SDC on dividends
17 yrs
Exemption period
60 days
Min. residency per year
60+
Tax treaty countries
Written by Renato Giurea, founder of CyPRO One · Updated 20 August 2026
Regulated work described on this page is carried out by licensed Cyprus partners.
What is Cyprus Non-Dom Status?
Cyprus introduced its Non-Domicile regime as part of the 2015 tax reform. Under Section 2 of the Special Defence Contribution (SDC) Law, individuals who become Cyprus tax residents but were not born in Cyprus and have not historically been domiciled there qualify as "non-domiciled" individuals.
The SDC is a levy that normally applies to dividend, interest, and rental income received by Cyprus tax residents who are domiciled in Cyprus. Under the 2026 tax reform, the SDC rate on dividends and interest was reduced from 17% to 5%. Non-Dom individuals remain completely exempt from SDC altogether — meaning dividends paid from a Cyprus company (or from any foreign company) reach them tax-free, for up to 17 consecutive years.
Combined with Cyprus's 15% corporate tax rate — one of the lowest flat corporate tax rates in the EU — Non-Dom status creates an effective tax stack where corporate profits can be distributed to founders with no further personal tax liability whatsoever. This is why Cyprus has attracted thousands of international entrepreneurs, fund managers, and investors since 2015.
Key Benefits of Non-Dom Status
0% Tax on Dividends
Non-Dom status exempts you from the Special Defence Contribution (SDC) on dividends — from both your Cyprus company and from foreign investments. (SDC was reduced from 17% to 5% in the 2026 tax reform; Non-Doms remain at 0%.)
0% on Rental & Interest Income
SDC also applies to rental and interest income in Cyprus. Non-Dom status removes this liability entirely for up to 17 years.
Worldwide Dividends Tax-Free
Foreign dividends received by a Cyprus Non-Dom are equally exempt. You can hold international investments through your Cyprus holding company without triggering SDC.
EU Legal Framework
Cyprus has been an EU member since 2004. Non-Dom status is a mainstream, codified part of the Cyprus Income Tax Law — not a grey-area arrangement.
Up to 17 Years
Non-Dom status lasts 17 years from the date you become a Cyprus tax resident — provided you were not domiciled in Cyprus for any 20 of the preceding 25 years.
Combined with 15% Corporate Tax
The Non-Dom exemption stacks with Cyprus's 15% corporate tax rate (among the lowest in the EU), creating one of Europe's most efficient personal + corporate tax stacks.
Calculate Your Tax Saving
Enter your annual company profit and see the full step-by-step breakdown — with and without Non-Dom status.
Step 1
The company
Tax on the profit, paid by the company.
Profit after tax
€85,000Step 2
The dividend
Tax on what you take out, paid by you personally.
Net dividend in your pocket
15% in step 1, then 2.65% in step 2 — 17.3% all-in
What is Non-Dom status?
0% Special Defence Contribution on dividends, interest and rental income for up to 17 years, where a Cyprus-domiciled resident pays 5%. Most foreign nationals who move to Cyprus and spend at least 60 days a year there qualify.
Read the Non-Dom guideFor illustration only, not a computation of your liability. It assumes the whole after-tax profit is distributed to you in the same year, because GeSY is charged on the dividend when you draw it. It does not account for personal income tax, allowable deductions, or individual circumstances. Tax law is subject to change. Always seek independent professional advice before making decisions based on this content.
How to Obtain Non-Dom Status
Register a Cyprus Company
Most Non-Dom applicants first form a Cyprus limited company (LTD) to hold their business or investment income. CyPRO One coordinates the registration process.
Establish Tax Residency
Spend 60+ days per calendar year in Cyprus (or meet the 183-day test). You do not need to live full-time in Cyprus.
Apply for Non-Dom Certificate
Your assigned Cypriot tax lawyer submits the Non-Dom application to the Cyprus Tax Department (TD) with supporting statutory declarations.
Obtain TIC and Non-Dom Status
Once granted, you receive a Cyprus Tax Identification Number (TIC) and your Non-Dom status is registered. Dividends from your company are immediately exempt from SDC.
Who Qualifies for Non-Dom Status?
To qualify for Cyprus Non-Dom status, you must:
- Become a Cyprus tax resident (spend 60+ days in Cyprus per calendar year under the 60-day rule, or 183+ days under the standard rule)
- Not have been domiciled in Cyprus for any 20 of the 25 years immediately preceding the relevant tax year
- Not have a 'domicile of origin' in Cyprus (broadly: not be Cypriot by birth)
- Have not been a Cyprus tax resident for more than 17 of the preceding 20 years (the 17-year cap)
In practice, almost any non-Cypriot national who has not lived in Cyprus for extended periods in the past will qualify. CyPRO One's legal partner reviews eligibility as part of the onboarding process.
This page is for information only
Nothing on this page constitutes legal or tax advice. Tax law is subject to change. The specific impact of Non-Dom status on your personal circumstances depends on your country of origin, existing tax obligations, and residency history. Always seek independent tax advice before making residency or domicile decisions.
Frequently Asked Questions
What is Cyprus Non-Dom status?
Cyprus Non-Domicile (Non-Dom) status is a formal tax classification granted to individuals who take up tax residency in Cyprus but were not born in Cyprus and have not historically been domiciled there. Under Cypriot law (Section 2 of the Special Defence Contribution Law), Non-Dom individuals are exempt from the Special Defence Contribution (SDC) on dividends, interest, and rental income for a period of up to 17 consecutive years. (The SDC rate on dividends and interest was reduced from 17% to 5% under the 2026 tax reform; Non-Doms remain fully exempt.)
Do I have to live in Cyprus full time?
No. Cyprus offers a '60-day rule' that lets you qualify as a Cyprus tax resident on as few as 60 days here. From the 2026 tax year it sets four conditions, all of which must hold in the same year: at least 60 days physically in Cyprus; not more than 183 days in any other single country; a permanent home in Cyprus that you own or rent; and carrying on a business in Cyprus, being employed in Cyprus, or holding an office in a Cyprus tax-resident company. A fifth condition — that you were not a tax resident of any other country — applied up to and including the 2025 tax year and was removed with effect from 1 January 2026, so a competing claim from another country now falls to the relevant double tax treaty's tie-breaker instead of disqualifying you outright. Many Non-Dom beneficiaries split their time between Cyprus and other countries.
How long does Non-Dom status last?
Non-Dom status lasts for 17 years, starting from the tax year in which you become a Cyprus tax resident, provided you were not domiciled in Cyprus during any 20 of the preceding 25 years before the application. After 17 years, SDC would apply to your Cyprus-sourced income.
What income is exempt under Non-Dom?
The SDC exemption covers: (1) dividends from any company — Cyprus or foreign; (2) interest income; (3) rental income from property located in Cyprus. Salary and self-employment income are taxed under normal Cyprus income tax rules (with a 50% exemption available for high earners relocating to Cyprus under Article 8(23a) of the ITA).
Can I keep my existing company abroad?
Yes. Non-Dom status is a personal tax classification. You may receive dividends from any company — in Cyprus or abroad — free of SDC. However, you would typically also incorporate a Cyprus company to benefit from the 15% corporate tax rate and the extensive Cyprus tax treaty network.
What is the cost of obtaining Non-Dom status?
CyPRO One quotes Non-Dom application assistance as a standalone service. The fee covers preparation of statutory declarations, liaison with the Cyprus Tax Department, and registration of your TIC. See the /company-incorporation page for itemised pricing.
Is Cyprus Non-Dom legal and internationally recognised?
Yes. Non-Dom status is enshrined in the Cyprus Income Tax Law and the Special Defence Contribution Law. Cyprus is an EU member state and an OECD-compliant jurisdiction. Cyprus has over 60 double taxation treaties. Non-Dom is not a loophole — it is a mainstream, codified part of Cyprus tax law, similar in concept to the UK's historic non-domicile regime.
Related Services & Guides
Cyprus Non-Dom Status Guide 2026 — Eligibility, 60-Day Rule & Tax Savings | CyPRO One
Complete guide to Cyprus Non-Domicile (Non-Dom) status: eligibility criteria, the 60-day rule, how to apply, real tax savings examples, and how Non-Dom combines with a Cyprus company for a 15% effective tax rate.
Relocation to Cyprus — Find Your Home | CyPRO One
Relocation support for individuals and families moving to Cyprus. Neighbourhood guidance, trusted estate agent introductions, and lifestyle orientation — coordinated alongside your Cyprus company setup.
Cyprus Company Formation — Register a Cyprus LTD | CyPRO One
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