Cyprus Non-Dom Regime Explained

In this episode, we unpack Cyprus’s Non-Domicile (Non-Dom) tax regime — one of the most strategic tax residency options in Europe for high-net-worth individuals. Introduced in July 2015, this regime continues to position Cyprus as a compliant, transparent, and highly attractive jurisdiction for international relocation and wealth structuring.

We’ll explain what it means to be a “non-dom,” how to qualify, and the real tax advantages that make Cyprus one of the leading destinations for global citizens seeking efficient tax residency.

🧩 Key Topics Covered

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• What Is the Non-Dom Regime?
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• Introduced as part of Cyprus’s 2015 tax reforms, the non-dom status applies to new tax residents who are not domiciled in Cyprus for up to 17 years.
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• The Core Benefit – No SDC Tax:
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• Non-domiciled residents are exempt from the Special Defence Contribution (SDC) tax, which normally applies to dividends and interest.
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• ➤ This means dividend and interest income are completely tax-free in Cyprus.
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• Tax Residency Rules:
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• 183-Day Rule: Spend at least 183 days in Cyprus.
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• 60-Day Rule: Available if you meet certain conditions (such as no tax residency elsewhere and maintaining ties with Cyprus).
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• Cyprus residents are taxed on worldwide income, but foreign tax credits are available to avoid double taxation.
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• Other Major Benefits:
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• • No capital gains tax on the sale of foreign property
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• • No wealth, inheritance, or gift taxes
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• • Employment income exemptions for new residents
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• • Exemptions for dividends, interest, and share gains
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• Who Benefits Most:
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• Entrepreneurs, investors, and retirees looking for EU residency, low taxation on passive income, and a high quality of life under a stable legal and banking system.
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💡 Why It Matters

Cyprus has successfully balanced attractiveness with compliance — offering one of Europe’s most generous tax regimes while remaining aligned with OECD, EU, and FATF standards.

The non-dom framework is now a cornerstone of Cyprus’s global competitiveness, making it a leading choice alongside Malta, Portugal, and Italy for high-net-worth relocation.

🧠 Key Takeaways

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• Non-dom status lasts for 17 years after becoming tax resident.
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• Dividend and interest income = 0% tax under the SDC exemption.
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• No wealth, gift, or inheritance taxes — Cyprus taxes income, not capital.
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• The 60-day residency rule allows flexible physical presence for global individuals.
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• Cyprus remains fully compliant with international transparency standards while maintaining a highly attractive personal tax regime.
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🔍 Mentioned in This Episode

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• Cyprus Income Tax Law (2015...