Cyprus Tax Residency & Non-Dom Status.The Ultimate Guide
Low personal tax
Zero tax on dividents
Tax exemptions & deductions
Losses carried forward
Become a Cyprus Tax Resident with Non-Dom status
Cyprus tax residency is widely used from professionals, entrepreneurs, CEO’s, aviation professionals, athletes and artists that are constantly on the move. Cyprus tax residency gives the opportunity to any individual to benefit from Cyprus Income tax on his worldwide income. Ask our tax advisors anything you need to know and how you can benefit.
0% tax on dividents
0% tax on Interest
No inheritence Tax
No capital gains tax
How to become Cyprus Tax Resident? 183 and 60 days rule explained
Tax resident with 183 days rule
Cyprus Tax Resident with the 183 days rule.
An individual who spends in the territory of Cyprus for more than 183 days in a calendar year is eligible to become a tax resident.
Tax resident with 60 days rule
Physical Presence.
Spend at least 60 days in Cyprus within the tax year.
Economic Ties.
Be a director, an employee, or exercise a business through a company registered in Cyprus.
Permanent Home.
Maintain a permanent residence in Cyprus (owned or rented) for personal use.
Global Presence.
You must not spend more than 183 days in any other single country.
how do days in the country count for both rules
For both 60 or 183 days rule, the days count in and out of Cyprus territory are below.
- The day of departure from Cyprus counts as a day of residence outside Cyprus.
- The day of arrival in Cyprus counts as a day of residence.
- Same day arrival and departure from Cyprus counts as a day of residence in Cyprus.
Cyprus income tax rate | 2026 UPDATE
A Cyprus tax resident is taxed on all the income from sources within or out of Cyprus. A non-Cyprus resident is taxed on certain income collected from sources in Cyprus.
| YEARLY INCOME | TAX RATE | ACCUMULATED TAX |
|---|---|---|
| €0 – €22,000 | 0% | €0 |
| €22,001 – €32,000 | 20% | €2,000 |
| €32,001 – €42,000 | 25% | €4,500 |
| €42,001 – €72,000 | 30% | €13,500 |
| Over €72,000 | 35% | -- |
Taxation & Benefits
What are the main Tax Exemptions?
Employment Income exemption
50% Tax Deduction Is Provided On Remuneration From Any Employment Exercised In Cyprus By An Individual Who Was Not A Resident Of Cyprus Before The Commencement Of The Employment And With Annual Income Of Over €55.000
From 2022 Onwards. The Exception Is Provided For 17 Years From The Year Of Employment.
An alternative of 20% exemption is also valid for 3 years if employee annual remuneration is less than €100.000
Will I have a Cyprus Tax Identification Number?
Yes, a Cyprus tax resident has a Tax ID issued.
Do I have to pay taxes in other countries?
Yes, if you have revenue arising from other countries. A double taxation allowance is given on taxes paid abroad.
Is tax residency the same as the e-residency?
No, Tax Residency is something totally different from the e-residency.
Tax residency is about minimizing your taxes and reduce your obligations to only one country.
You may still operate from any place you would like.
required documentation and process
What is the documentation needed to apply for the Tax residency in Cyprus?
- Passport copy
- A bank statement – A six months old statement as a proof of sufficient funds
- Proof of source of income
- Tax department tax residency certificate completed
- Health Insurance
- Residence rental agreement or proof of property ownership
- Residency permit for EU nationals (Yellow slip) or the equivalent for non-EU nationals (Pink slip)
How long does the process take?
The process duration usually takes 10-15 days to be completed.
Download the tax Residency certificate request
Feeling confused? Book a free meeting with a tax advisor.
The Non-Domicile status in Cyprus
Foreigners who relocate their personal tax residency to Cyprus will be considered non-domiciled for up to 17 years. This status provides an exemption from the Special Defence Contribution (SDC) Tax, which typically applies to passive income such as dividends, rental income, and interest.
Tax benefits of cyprus non-dom status
Divident Income.
Exempt from the 17% Special Defence Contribution Tax (SDC) and income tax.
Those who eventually become domiciled (after 17 years), the SDC rate on dividends has been reduced from 17% to 5% for profits earned from 2026 onwards.
Rental Income.
SDC on rental income has been completely abolished for all residents (even domiciled ones).
Interest Income.
SDC on passive interest income has been abolished.
Deemed Divident Distribution.
DDD rules have been abolished for profits generated from 1 January 2026 onwards.
Tax exemption from Special Defense Contribution tax. (SDC)
Non-domiciled individuals who become tax residents of Cyprus are exempt from SDC on dividends and interest and rental income. They are obligated to contribute to the General Health System (GeSY) at a rate of 2.65%, with a maximum cap of 4,770 EUR as payable contributions.
Are you eligible for the Cyprus Non-Domicile status?
Any foreigner who becomes a Tax Resident of Cyprus can apply for the Non-Dom tax status. The status does not require a financial threshold and makes no distinction between EU and third-country nationals.
- Domicile of origin, place of birth, is not Cyprus.
- The individual was not a tax resident In the Republic for a period of at least 20 consecutive years prior to the tax year in question; or
- Irrespective of the domicile of origin, an individual who remains a tax resident of Cyprus for a period of at least 17 years out of the last 20 years prior to the tax year in question, shall be deemed as domiciled for SDC purposes.
Extension of Non-Dom status in Cyprus | 2026 Amendment
After the initial 17 years, individuals can now extend their non-dom status for up to two additional five-year periods (totaling 27 years) by paying a lump-sum amount of €250,000 per five-year period.
Cyprus Non-Dom Eligibility test
1. Has the individual been Cyprus tax resident for 17 years or more out of the last 20 years prior to the current tax year of assessment?
No, then move to question 2.
Yes, then the individual is Domiciled in Cyprus
2. Does the individual have a Cyprus domicile of origin?
Yes, move to question 3.
No, then the individual is considered as Non-Dom.
3. Has the individual been tax resident outside of Cyprus for the entire 20 consecutive years from 1995 until 2014?
Yes, then the individual is considered a Non-Dom.
No, move onto question 4.
4. Has the individual acquire and still maintains a domiciled of choice outside Cyprus?
Yes, move to question 5.
No, the individual is domiciled in Cyprus.
5. Has the individual been a non-Cyprus Tax resident for any 20 years consecutive period?
Yes, then the individual is considered a Non-Dom.
No, then individual is considered as domiciled in Cyprus.
Key Compliance Updates for 2026
Mandatory Filing.
All tax residents aged 25 and over must now submit an annual income tax return, regardless of whether they have taxable income. Substance
Emphasis.
While day-counting remains critical, authorities now place greater emphasis on the “Center of Vital Interests”—where your main economic activities, family ties, and social life are truly centered.
Payment Simplification.
Payment of SDC on foreign dividends and interest is now tied to your tax return filing (single payment), replacing the old two-installment system.
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