# Cyprus Non-Dom Tax Regime

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

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 is 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](https://xiry.app/topics/business-money.md)
- 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](https://www.instagram.com/reel/DTFNN0qjMLx/): Provides a legally acknowledged 0% tax rate on worldwide dividend and interest income for up to 17 years within the European Union.

## Related

- [Tax.One](https://xiry.app/resources/tax-one): Tax advisory and relocation services for Cyprus and the UAE. (Website, Paid)
- [The 'Dubai Stack' International Wealth Structuring Framework](https://xiry.app/resources/the-dubai-stack-international-wealth-structuring-framework): A multi-jurisdiction entity structure for international tax optimization and asset protection. (Tip, Free)
- [Tier 1 VC Firms in Europe (Dealroom Ranking)](https://xiry.app/resources/tier-1-vc-firms-in-europe-dealroom-ranking): Top ten European venture capital firms ranked by portfolio outcomes. (List, Free)

Updated 3 October 2026. Page: https://xiry.app/resources/cyprus-non-dom-tax-regime

Make your own library: Xiry takes your saved reels, tweets, Reddit bookmarks and Watch Later videos, makes them searchable and pulls the useful stuff out, like this library. It's invite-only for now; join the waitlist at https://xiry.app/#waitlist.