Cyprus is widely recognised not only for its warm climate, scenic coastlines, and exceptional quality of life, but also as one of the most tax-attractive jurisdictions in the European Union. The Cyprus Non-Domicile (Non-Dom) tax regime offers a unique opportunity for individuals seeking to lawfully minimise their global tax burden while residing in a business-friendly environment.

What Is the Cyprus Non-Domicile Status?

Under Cyprus law, “domicile” refers to the jurisdiction to which a person is most deeply connected—typically where they were born, raised, or have spent the majority of their life.

However, Cyprus allows individuals to become tax residents without being domiciled in Cyprus, provided they have not lived in Cyprus for 17 out of the past 20 years. This “non-domicile” classification forms the basis for several substantial tax exemptions.

Key Tax Benefits of the Cyprus Non-Dom Program

Cyprus offers one of the most attractive non-dom regimes in Europe, particularly for high-net-worth individuals, entrepreneurs, and remote workers. Key tax exemptions include, apart from the obvious Special Defence Contribution Tax:

• No Tax on Dividends: Dividend income from local or foreign companies is entirely exempt from tax.
• No Tax on Interest Income: Interest earned on savings, deposits, and other financial instruments is not taxed.
• No Tax on Most Foreign-Sourced Income: The majority of income generated from outside Cyprus is exempt from taxation.
• No Wealth, Gift, or Inheritance Tax: Cyprus imposes no taxes on wealth, estate, or inheritance—ensuring asset protection and succession planning efficiency.

These benefits remain in place for a duration of 17 years from the date the individual becomes a Cyprus tax resident.

Who Can Benefit from Cyprus’s Non-Dom Regime?

The Non-Dom Program is ideal for:

• Entrepreneurs and shareholders receiving dividends from global companies
• High-net-worth individuals with diversified international income
• Remote professionals and digital nomads seeking a tax-efficient EU base
• Retirees with pensions or foreign property income
• Passive investors earning interest or capital gains abroad

How to Become a Tax Resident in Cyprus

To benefit from the Non-Dom regime, an individual must first establish Cyprus tax residency, which can be achieved in one of two ways:

1. 183-Day Rule

Reside in Cyprus for more than 183 days during the calendar year.

2. 60-Day Rule

Spend at least 60 days in Cyprus, provided that:

• You maintain a residential property in Cyprus (owned or rented)
• You conduct business or are employed in Cyprus
• You do not reside in another country for more than 183 days during the same year

Once either threshold is met, individuals may apply for tax residency and non-dom status.

Why Choose Cyprus for Tax Residency?

Cyprus combines a business-friendly tax framework, EU membership, and English-based legal system, making it one of the most desirable destinations for relocating globally mobile individuals and businesses. The Non-Dom Program enhances Cyprus’s appeal as a base for international wealth planning, tax optimisation, and personal security.

Conclusion: Take Advantage of the Cyprus Non-Dom Regime

Whether you are planning your retirement, restructuring your business, or simply looking for a better lifestyle, Cyprus’s Non-Domicile tax program offers unparalleled benefits within the European Union.

✅ Need Assistance? Contact Yiorkas Law

At Yiorkas Law, we provide expert guidance on all legal and tax matters related to Cyprus tax residency, immigration, and cross-border structuring.

📩 Get in touch with our team for tailored advice on whether the Cyprus Non-Dom Program is right for you.Cyprus Non-Domicile (Non-Dom) Tax Program: A Leading EU Tax Residency Solution