CYPRUS TAX RESIDENCY & NON-DOM
Establish Cyprus tax residency and qualify for non-dom status.
We guide you through Cyprus tax residency under the 60-day or 183-day rule and help you secure non-dom status for up to 17 years of tax-free dividends and interest. From assessing which residency route fits your lifestyle to handling tax registrations, non-dom applications, company incorporation, and ongoing compliance, we ensure a seamless transition. With 12.5% corporate tax, no inheritance or wealth taxes, and EU access, Cyprus offers unmatched tax efficiency.
Why Cyprus?
Cyprus has earned its reputation as one of Europe’s most attractive relocation hubs. It’s not only for its sunshine and lifestyle, but also for its favourable tax system. With a corporate tax rate of 12.5%, no inheritance or wealth taxes, and exemptions for non-doms on dividends and interest, the island offers both financial efficiency and peace of mind. Add in over 65 double tax treaties, a strategic EU location, and a simple residency framework, and you can see why entrepreneurs, investors, and internationally mobile individuals are making Cyprus their base.
How to Become a Cyprus Tax Resident
Cyprus doesn’t overcomplicate things. You can qualify under one of two rules:
- 183-day rule: spend more than half the year in Cyprus and you’re automatically considered a tax resident.
- 60-day rule: a more flexible route introduced in 2017. The Cyprus tax residency 60 days rule allows you to become a resident with as little as 60 days in Cyprus, provided you don’t exceed 183 days in any other country, you’re not tax resident elsewhere, you keep a home in Cyprus (owned or rented), and you either work, run a business, or hold an office in a Cyprus company.
Counting days is straightforward. Arrival is a day in Cyprus, departure is a day abroad. If you arrive and leave the same day, it still counts as time in Cyprus.
This framework is particularly appealing for digital nomads, consultants, and mobile entrepreneurs who want an EU base without being tied down for most of the year.
The Cyprus Non-Dom Advantage
Becoming a tax resident is step one. The real benefits come from securing non-domicile (non-dom) status – also known as the Cyprus non-domiciled tax status.
In Cyprus, domicile is separate from residency. Unless you were born with a Cypriot domicile of origin, or you’ve been a Cyprus tax resident for 17 of the last 20 years, you’ll usually qualify as a non-dom. And that makes all the difference.
Non-doms are exempt from the Special Defence Contribution (SDC), which normally applies to dividends, interest, and certain rental income. For up to 17 years, these sources remain tax-free. In practice, this is what makes Cyprus one of the most competitive low-tax jurisdictions in Europe.
How It Works in Practice – Example
Consider John, a UK-based tech entrepreneur who relocates to Cyprus and becomes a tax resident under the 183-day rule. By establishing non-Dom status, John sets up a Cyprus-based company to invoice clients, which is subject to a 12.5% corporate tax on its profits.
Cyprus companies can deduct various expenses from their taxable income, further reducing tax liability. The remaining profits are distributed to John as tax-free dividends, which would typically be taxed at 17% but are exempt due to his non-Dom status. Note, however, that dividends are subject to a 2.65% General Health System (GHS) contribution, capped at EUR 180.000.
By leveraging Cyprus’s tax exemptions, including the SDC exemption and no withholding taxes on dividends, John significantly reduces his tax burden and retains more earnings while enjoying Cyprus’s low-tax environment.
Documents Needed to Apply for Non-Domiciled Status
To apply for non-Dom status, applicants must have a Cyprus Tax Identification Code (TIC) and submit the following documents:
- Forms T.D.38 and T.D.38QA.
- Evidence of the father’s place of birth (birth certificate or passport).
- A copy of the applicant’s passport or ID.
- Certificate of Registration (Form MEU1).
Additional documents may include:
- Shareholder’s Certificate.
- Property title or rental agreement with stamp duties.
- Employment contract with stamp duties.
- Full-year utility bills showing Cyprus residence.
- A copy of the submitted tax return (T.D.1).
The Cyprus Tax Department may request further information.
Key Benefits of Cyprus Residency & Non-Domiciled Status
When you put the residency rules and non-dom regime together, here’s what you get:
- Corporate tax fixed at 12.5%, with broad deductibility of expenses.
- Dividend and interest income free of SDC for non-doms.
- No inheritance, gift, or wealth taxes.
- Capital gains tax limited only to sales of Cyprus real estate.
- Social insurance and healthcare contributions capped, ensuring no open-ended liabilities.
It’s a structure that works as well for high-net-worth investors as it does for entrepreneurs and remote professionals.
Who Benefits Most?
We see four main groups taking advantage of this regime:
- Entrepreneurs and startup founders who want an EU-based company.
- Investors with significant dividend or interest income looking to shield it from tax.
- Remote workers and digital nomads needing flexibility without losing EU access.
- High-net-worth individuals seeking a safe, efficient jurisdiction for wealth planning.
How We Help
At Nikita & Partners, we’ve guided countless clients through this process. We don’t just explain the rules but we help you apply them. From assessing whether the 60-day or 183-day rule fits your lifestyle, to handling tax registrations, non-dom filings, and company setups, we make the transition seamless. And once you’re here, we take care of ongoing compliance so you can focus on living and working the way you want.
Cyprus offers a unique combination of tax efficiency and quality of life. By combining tax residency with non-dom status, you can significantly reduce your global tax burden while securing a stable EU base.
Contact us to explore how Cyprus tax residency and non-dom status can work for you.
Frequently Asked Questions
The tried-and-tested route is to incorporate a Cyprus company, employ yourself through it, and rent a local property. This creates substance and strengthens your application. It’s the structure most applicants choose because it works smoothly for both tax and immigration purposes.
If you’re currently paying 20%–30% tax on dividends or investment income in another country, the savings in Cyprus can be dramatic. For many, the 0% tax on dividends and interest outweighs the practicalities of relocating. Add in the lifestyle and EU access, and the move often pays off quickly.
For EU nationals, the process is relatively straightforward. For non-EU nationals, immigration and visa requirements add some complexity, but approvals are common when the application is well prepared. Every year, hundreds of people secure Cyprus tax residency and non-dom status successfully.
Strictly speaking, it’s not compulsory. But in practice, renting or buying a home makes your application much stronger. It proves your connection to Cyprus and is especially important if you’re not on the payroll of a Cyprus company.
Not always. Many applicants set up a Cyprus company and employ themselves through it, as this demonstrates clear economic activity. If you’re a third-country national, your visa status must be reviewed before you can be added to payroll.
No. Every application depends on your background. EU nationals follow a lighter process, while non-EU applicants often face additional immigration and visa requirements. Whether you intend to work, run a company, or just live from investment income also shapes the structure of your application.
Begin the Process
If you’re ready to establish Cyprus tax residency and secure non-dom status, our team is here to guide you. From assessing the 60-day or 183-day rule through tax registrations, non-dom applications, and company incorporation, we handle every step to help you unlock tax-free dividends, 12.5% corporate tax, and EU access.