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This article is reviewed periodically to reflect changes in Cyprus tax legislation. Last reviewed: July 2026. Cyprus non-dom status exempts qualifying individuals from Special Defence Contribution (SDC), meaning 0% tax on dividends, interest, and rental income for up to 17 years. But it does not switch on by itself – it requires a formal application to the Cyprus Tax Department. This guide explains exactly how, step by step, with the correct forms and documents for 2026.

What Is Non-Dom Status in Cyprus?

Cyprus non-domicile status is a tax classification that exempts Cyprus tax residents from paying SDC, provided they are not domiciled in Cyprus under the relevant legislation. The core benefit in 2026:

• 0% SDC on dividends – compared to 5% for domiciled Cyprus residents on profits generated from 1 January 2026 onwards (reduced from the previous 17%)
• 0% SDC on interest income
• 0% SDC on rental income – SDC on rental income was abolished for all Cyprus tax residents from 1 January 2026; rental income remains subject to ordinary income tax

Duration: 17 tax years from the first year you become a Cyprus tax resident. Under the 2026 reform, an optional extension of two consecutive five-year periods is available at €250,000 per period, giving a potential maximum of 27 years. Eligibility – the domicile test. You must not have been domiciled in Cyprus for at least 17 of the last 20 years before the relevant tax year. Domicile of origin is acquired at birth (generally following the father’s domicile). If neither your domicile of origin nor your domicile of choice is in Cyprus, and you have not been a Cyprus tax resident for 17 of the last 20 years, you qualify. What non-dom status does not exempt you from: personal income tax (with the first €22,000 tax-free from 2026), capital gains tax at 20% on Cyprus-situated immovable property, and GeSY (General Health System) contributions of 2.65% on dividends. The governing legislation is the Special Contribution for the Defence of the Republic Law (Law 117(I)/2002, as amended) and the Cyprus Income Tax Law (Law 118(I)/2002, as amended).

Step 1 – Establish Cyprus Tax Residency First

Non-dom status cannot exist without Cyprus tax residency. You must first qualify under one of two routes.

The 183-Day Rule

Spend more than 183 days in Cyprus in a calendar year. Arrival counts as a Cyprus day; departure counts as a day abroad.

The 60-Day Rule (Simplified in 2026)

You qualify if all four of the following conditions are met in the tax year:

1. At least 60 days physically present in Cyprus
2. No other single country for more than 183 days
3. Cyprus business or employment tie – carry out business in Cyprus, be employed in Cyprus, or hold a directorship in a Cyprus tax-resident company (and that activity is not terminated during the year)
4. Permanent home in Cyprus – owned or rented

2026 update: the previous fifth condition – that you must not be tax resident in any other country – was removed effective 1 January 2026. Dual-residency situations are now resolved under the tie-breaker rules of the applicable double tax treaty. The mechanics are set out in our 60-day tax residency guide. Once you meet either rule, obtain a Cyprus Tax Identification Number (TIN) from the Tax Department. This is the mandatory first step before any non-dom application can proceed.

Step 2 – Gather Your Documents

The Cyprus Tax Department requires a specific set of documents. Based on current practice, prepare the following. Core documents:

• Valid passport – certified copy
• Proof of Cyprus address – utility bill, rental agreement (with stamp duties), or property title deed
• Proof of Cyprus business or employment – company registration documents, employment contract (with stamp duties), or director appointment letter
• Birth certificate – translated and apostilled; required to establish your domicile of origin, because the Tax Department uses it to verify that your father’s domicile was outside Cyprus
• Evidence of father’s place of birth – birth certificate or passport page

Application forms:

• Form T.D.38 – the main non-dom declaration form submitted to the Cyprus Tax Department
• Form T.D.38QA – the accompanying questionnaire used to declare domicile of origin details
• Form T.D.38QB – may be required in specific circumstances; your adviser will confirm

Additional documents that may be requested:

• Certificate of Registration (Form MEU1) – for EU nationals
• Shareholder’s certificate
• Copy of submitted tax return (T.D.1)
• Full-year utility bills confirming Cyprus residence

The exact set of documents can vary depending on your nationality, domicile history, and individual circumstances. A qualified Cyprus tax adviser will confirm the current requirements before submission.

Step 3 – Submit the Application to the Cyprus Tax Department

The non-dom application is submitted to the Cyprus Tax Department – not the Registrar of Companies, not the Civil Registry. Specifically, it goes to the district tax office where your tax file is held. Submission options:

• In person at your local district tax office
• Through an authorised representative holding a Power of Attorney (POA) on your behalf

In practice, the non-dom declaration (Form T.D.38 and supporting forms) is filed at the point when you first earn income subject to SDC – typically when you receive your first dividend or interest payment as a Cyprus tax resident. That may be months, or even years, after you obtain your TIN. KTC handles the full submission process on behalf of clients – from preparing the forms and gathering documents to attending the Tax Department and managing any follow-up queries.

Step 4 – Receive Your Non-Dom Certificate

Once the Tax Department reviews and approves the declaration, it issues a non-domicile certificate confirming your status for the relevant tax year. This certificate is:

• Accepted by Cyprus banks for account due diligence and dividend payment purposes
• Accepted by foreign tax authorities as proof of your Cyprus non-dom status for treaty relief and reporting purposes

Processing time: typically a few weeks to several months, depending on the Tax Department’s current workload and the completeness of your submitted documents. Incomplete applications are the most common cause of delays.

Step 5 – Annual Obligations After Obtaining Non-Dom Status

Non-dom status is not a one-time filing. You have ongoing obligations each year:

• File your annual income tax return (Form T.D.1) by 31 July of the following tax year
• Declare non-dom status annually – the exemption is assessed on a year-by-year basis
• Maintain Cyprus tax residency – meet the 60-day or 183-day conditions each calendar year
• Keep records of days spent in Cyprus – day-count records are essential if your residency is ever queried
• Monitor the 17-year clock – once you have been a Cyprus tax resident for 17 of the last 20 years, you become deemed domiciled and lose the SDC exemption unless you elect the paid extension

If you acquire a domicile of choice in Cyprus – by moving there with the clear intention of remaining permanently – the exemption ceases regardless of how many years remain on the clock.

How Non-Dom Status Works With a Cyprus Company

Here is a concrete example showing why the regime is so effective for business owners. Scenario: a Cyprus company earns €500,000 profit in 2026.

Step	Amount
Gross profit	€500,000
Corporate income tax (15%)	−€75,000
Net profit after CIT	€425,000
Dividend to non-dom founder – SDC	0%
Effective combined rate on distributed profits	≈ 15%

Compare to a domiciled Cyprus resident receiving the same dividend from post-2026 profits:

• SDC at 5% on €425,000 = €21,250
• Combined effective rate: ≈ 19.25%

The difference is real and material – particularly at scale. And before the 2026 reform, that SDC rate for domiciled residents was 17%, making the non-dom advantage even more pronounced at the time. Note that GeSY contributions of 2.65% apply to dividend income for non-doms, subject to the annual GeSY cap of €180,000 on total liable income. Our guide on non-dom status for entrepreneurs taking dividends works through more scenarios.

Frequently Asked Questions

Can I apply for non-dom status remotely?

Yes. The application can be submitted through an authorised representative holding a Power of Attorney. You do not need to attend the Tax Department in person. KTC routinely manages the full non-dom application process remotely for international clients.

How long does non-dom status last?

17 tax years from the first year you become a Cyprus tax resident. Under the 2026 reform, you can extend this for two consecutive five-year periods by paying a lump sum of €250,000 per period – giving a maximum of 27 years of SDC exemption.

What happens after 17 years?

Once you reach the 17-of-20-year threshold, you become “deemed domiciled” in Cyprus and SDC applies at the standard rates – currently 5% on dividends from post-2026 profits. Planning options at that stage include electing the paid extension (€250,000 per five-year period), restructuring income streams, or reviewing your overall tax position with a qualified adviser.

Do I need to apply for non-dom status separately from tax residency?

Yes. Obtaining a Cyprus TIN and becoming a tax resident does not automatically trigger non-dom status. You must file Form T.D.38 (and T.D.38QA) separately with the Tax Department. The two processes are distinct.

Is the process different for EU and non-EU nationals?

The core non-dom application process – forms, documents, Tax Department submission – is the same. However, non-EU nationals face additional immigration and visa requirements before establishing Cyprus tax residency, so the overall path typically involves more preparatory steps.

Useful Sources

• Cyprus Tax Department – Form T.D.38 (PDF)
• Cyprus Ministry of Finance – Tax Department
• PwC Tax Summaries – Cyprus taxes on personal income
• KPMG – Cyprus tax reform enacted, effective 1 January 2026

Talk to KTC about your non-dom application

KTC Business Consultants manages the full non-dom application – assessing your eligibility, establishing Cyprus tax residency, preparing Forms T.D.38 and T.D.38QA, gathering the documents, and handling the Tax Department submission on your behalf. Whether you are planning a move to Cyprus or have already relocated and need to formalise your status, one call is usually enough to confirm where you stand.

This page is for general information and does not constitute tax advice. Cyprus tax law changed substantially in 2026, so always confirm current rates, deadlines, and eligibility with a licensed advisor before acting.

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