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
- What Is the Non-Dom Regime?
- 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.
- The Core Benefit – No SDC Tax:
- Non-domiciled residents are exempt from the Special Defence Contribution (SDC) tax, which normally applies to dividends and interest.
- ➤ This means dividend and interest income are completely tax-free in Cyprus.
- Tax Residency Rules:
- 183-Day Rule: Spend at least 183 days in Cyprus.
- 60-Day Rule: Available if you meet certain conditions (such as no tax residency elsewhere and maintaining ties with Cyprus).
- Cyprus residents are taxed on worldwide income, but foreign tax credits are available to avoid double taxation.
- Other Major Benefits:
- • No capital gains tax on the sale of foreign property
- • No wealth, inheritance, or gift taxes
- • Employment income exemptions for new residents
- • Exemptions for dividends, interest, and share gains
- Who Benefits Most:
- 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.
💡 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
- Non-dom status lasts for 17 years after becoming tax resident.
- Dividend and interest income = 0% tax under the SDC exemption.
- No wealth, gift, or inheritance taxes — Cyprus taxes income, not capital.
- The 60-day residency rule allows flexible physical presence for global individuals.
- Cyprus remains fully compliant with international transparency standards while maintaining a highly attractive personal tax regime.
🔍 Mentioned in This Episode
- Cyprus Income Tax Law (2015...
