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Cyprus Non-Dom Tax Regime

Tax status offering 0% tax on worldwide dividends and interest income.

From the Xiry library · Updated 3 October 2026

The Cyprus Non-Domiciled (Non-Dom) regime is a European tax status that exempts qualifying foreign residents from Cyprus's Special Defence Contribution (SDC) tax. It enables eligible individuals to pay 0% tax on worldwide dividend and passive interest income for up to 17 years. It is particularly popular among international entrepreneurs and remote founders who qualify under the 60-day residency rule.

How it works

Key details of the Cyprus Non-Domiciled Status:

  • Tax benefits: Complete 0% tax exemption on worldwide dividend and passive interest income for up to 17 years.
  • Official documentation: Issued by the Republic of Cyprus Department of Taxation via Form T.D.38 ('Declaration of Individual for Exception as Non-Domiciled') under the Special Defence Contribution Law of 2002.
  • Estimated setup cost: Approximately €1,000 in legal/administrative fees to process the application.
  • Core residency conditions (60-day tax residency rule): Stay in Cyprus for at least 60 days per tax year; maintain permanent residential accommodation (owned or rented); conduct business or be employed/director in Cyprus; not reside in any other single country for more than 183 days.

What it's for

  • Exempt worldwide dividend income from local taxes legally within the EU
  • Establish tax residency in Europe with a minimal physical presence requirement of 60 days
  • Reduce personal tax liabilities on passive interest and investment distributions

Key points

  • 17-year exemption from Special Defence Contribution (SDC) tax on worldwide dividends and interest
  • 60-day residency route requiring only 60 days of physical presence per tax year in Cyprus
  • Permanent residence requirement satisfied through either rented or owned residential property
  • Requirement to carry out business, be employed, or hold a directorship in a Cyprus tax-resident company
  • Condition not to reside in any other single country for more than 183 days per year
  • Formal application submitted through Cyprus Tax Department Form T.D.38

Pricing

Paid. Approx. €1,000 in setup and legal/administrative filing fees

Details

Type
Tip
Category
Business & Money
Topic
Tax & Legal
Open source
No
Platforms
other
For
EU and international entrepreneurs, investors, and remote company directors.
Alternative to
Portugal NHR (Non-Habitual Resident) Regime, Malta Non-Dom Regime, Italy Flat Tax Regime, UAE Tax Residency
Tags
tax, cyprus, non dom, residency, dividends, europe

Why it was saved

  • @lowertax, 4 January 2026: Provides a legally acknowledged 0% tax rate on worldwide dividend and interest income for up to 17 years within the European Union.

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