UK will abolish its long-standing “non-dom” tax regime in April 2025, marking a significant shift in how the country handles tax residency for foreign nationals.
The move was announced during the 2025 budget presentation, with emphasis that this change will phase out the outdated concept of domicile in the tax system and at the same time bring in a new, residence-based scheme with competitive options for temporary residents.
This change is expected to encourage transparency in taxation for those living in the UK temporarily.
Is the Cyprus Non-Dom the alternative for Investors and entrepreneurs?
As experts weigh in, the removal of the non-dom tax regime may prompt high-net-worth individuals to seek countries with favorable tax structures.
Cyprus has already established a favorable tax system for non-domiciled residents, enabling them to manage foreign income without the tax rates applied within the UK.
The Cyprus Non-Dom along with the Tax residency Regime position the island as a prime destination for investors looking to relocate from the UK.
Foreigners who decide to move their personal tax residency in Cyprus, will automatically be considered as non-domiciled in Cyprus for a maximum of 17 years. Read more about Cyprus Tax residency here.
