Non-Dom Status - 17 Years Tax Advantage — Cyprus
Non-Domiciled status is Cyprus's premier tax benefit. Provides 0% tax on dividends and interest for 17 years. Exempt from Special Defense Contribution. Combined with 0% capital gains creates ultimate tax-efficient regime for investors and business owners.
Non-Dom Status - 17 Years Tax Advantage
Non-Domiciled status is Cyprus's premier tax benefit. Provides 0% tax on dividends and interest for 17 years. Exempt from Special Defense Contribution. Combined with 0% capital gains creates ultimate tax-efficient regime for investors and business owners.
Who Qualifies
Must not have been Cyprus tax resident for at least 17 of the 20 years immediately before becoming resident. Applies automatically to most foreigners moving to Cyprus.
Need Cyprus tax residency first (60-day rule or 183+ days). Once resident AND non-domiciled, benefits apply automatically.
Non-Dom benefits last up to 17 years from becoming Cyprus tax resident. Extremely long planning horizon.
Non-Dom Tax Benefits
0% tax on dividends from Cyprus and foreign companies. No income tax, no Special Defense Contribution. Business owners extract profits completely tax-free.
Bank interest, bond income: 0% tax. Regular residents pay 17% SDC on interest. Massive difference for fixed-income investors.
Special Defence Contribution (5% on dividends from 2026 profits, 17% on interest for regular residents) does NOT apply to Non-Doms. Saves thousands.
Non-Dom (0% dividends/interest) + Cyprus 0% capital gains on securities = near-complete investment income tax exemption (crypto: 8% from 2026).
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60-Day Tax Residency Rule
Cyprus offers easiest tax residency in EU: just 60 days physical presence. Much lower than standard 183 days. Perfect for high-earners wanting EU residency without living full-time. Game-changer for international tax planning.
03Progressive Income Tax 0-35%
Cyprus employment and business income taxed progressively. First €22,000 tax-free (2026 tax reform). Top rate 35% only on income above €72,000. Competitive rates. Combined with Non-Dom benefits on investment income creates complete package.
04Cyprus Tax Reform 2026: What Changed
A major tax reform took effect in Cyprus on 1 January 2026 after Parliament approved it on 22 December 2025. The tax-free threshold rose from €19,500 to €22,000, the 20–35% bands moved up, and new deductions arrived for children, rent or mortgage interest and energy efficiency. For investors, SDC on dividends fell from 17% to 5%, deemed dividend distribution was abolished and crypto gains are taxed at a flat 8%. Corporate tax rose from 12.5% to 15%.
05Investment Income - Dividends, Interest, Capital Gains
Cyprus is paradise for investment income. Non-Doms: 0% dividends, 0% interest. Everyone: 0% capital gains on securities; crypto gains taxed at a flat 8% from 2026. No other major EU country offers this combination. Why wealthy investors flock to Cyprus.
06Corporate Tax & IP Box
15% corporate tax from 2026 (12.5% until 2025). IP Box: 80% exemption = 3% effective rate on IP income. Extensive treaty network. No WHT on dividends out. Premier holding company jurisdiction.