Cyprus's Non-Domiciled tax status exempts qualifying residents from tax on dividends and interest income for 17 years. Here is who qualifies and what the process looks like.
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Investors and entrepreneurs earning significant dividend or interest income from international portfolios or company distributions are often taxed heavily in their home country on this passive income. Cyprus offers one of the most competitive exemptions in the EU for exactly this profile.
FIXE GROUP assesses your eligibility for Cyprus Non-Dom status, manages the residency application, and integrates the Cyprus structure with your existing corporate and personal setup.
Cyprus Non-Domiciled (Non-Dom) resident status exempts qualifying individuals from the Special Defence Contribution (SDC), which is the Cypriot tax on dividends (17%) and interest (30%) received from both Cypriot and non-Cypriot sources. Combined with Cyprus's 0% capital gains tax on disposal of securities, this makes Cyprus an extremely efficient jurisdiction for investors and holding company owners. Non-Dom status applies for 17 years from the date of first Cypriot tax residency.
Cyprus taxes residents under the Income Tax Law (Cap. 297) and the Special Defence Contribution Law (Law 117(I)/2002). The SDC applies to dividends and interest at 17% and 30% respectively — but only to Cypriot-domiciled residents. A non-domiciled resident — defined as someone who has not been domiciled in Cyprus for at least 17 of the last 20 years — is completely exempt from SDC, regardless of how much dividend or interest income they earn.
Route 1: 183-day rule — spend 183+ days in Cyprus in a calendar year. You are automatically a Cyprus tax resident. Route 2: 60-day rule (introduced by Law 4/2019) — spend at least 60 days in Cyprus, maintain a permanent home there (owned or rented), have no tax residency in another country, and either be employed or have business activity in Cyprus. The 60-day rule is particularly valuable for global entrepreneurs who cannot commit to 183 days in one country.
Personal income tax applies on Cypriot-source income at progressive rates up to 35% (with the first €19,500 tax-free). However, foreign-source employment income or director fees are exempt under the Cyprus Income Tax Law if the employer is non-Cypriot. Royalties and rental income from abroad: exempt under the Non-Dom structure if not remitted (Cyprus is not a pure territorial system, so specific income type analysis is required).
Legal basis
Cyprus Income Tax Law Cap. 297
Special Defence Contribution Law 117(I)/2002
Law 4/2019 (60-day residency rule)
Cyprus Tax Department Circular 2017/10 (Non-Dom application process)
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