Understanding Non-Dom Status and Taxes in Cyprus: A Smart Guide for New Residents

Non-dom tax residency in Cyprus is increasingly popular with digital entrepreneurs and investors, thanks to favourable tax rules, a Mediterranean lifestyle and a solid financial system. The figures below were stated in 2025 and may have changed, so check them with the Cyprus Tax Department before relying on them.

What is non-dom status and why does it matter?

• Non-dom status is a tax arrangement meant to attract foreign nationals who want to establish residency.
• It offers major tax breaks for up to 17 years.
• Non-doms are exempt from tax on dividends, interest and certain other income.
• It is an intentional policy rather than a loophole.

Who can qualify for non-dom status?

You must:

• Not have been a Cyprus tax resident for 17 of the last 20 years.
• Become a Cyprus tax resident through one of two routes:
• 183-day rule: spend at least 183 days in Cyprus in a calendar year.
• 60-day rule: spend at least 60 days in Cyprus, provided you:
  • do not spend more than 183 days in any other country;
  • have a permanent home in Cyprus (rented or owned);
  • are self-employed, employed by, or a director of a Cyprus-based company.

This suits mobile professionals. A permanent home is defined broadly, so renting in Nicosia or buying in Paphos can both qualify.

How do you secure non-dom status in Cyprus?

1. Relocate and settle

Move to Cyprus and establish a permanent home by buying or renting long-term. Location choices include Limassol, Larnaca, Nicosia and Ayia Napa.

2. Register as a tax resident

Apply for a Tax Identification Number (TIN) at the Cyprus Tax Department, providing evidence of your living situation and your business or job role.

3. Open a local bank account

A Cyprus bank account supports the application and helps with day-to-day costs. Major banks commonly offer English-language services.

4. Apply for non-dom status

Once registered, submit the non-dom application with the required forms and proof of your life in Cyprus. Working with local legal or tax professionals is suggested.

What are the key benefits of non-dom status?

• No tax on dividends, interest and rent: exemption from Special Defence Contribution (SDC) for 17 years.
• Income tax exemptions: a 50% income tax break for the first decade on earnings over €100,000, which drops to €50,000.
• No wealth or inheritance tax.
• Low corporate tax: 12.5%.
• Capital gains exemptions: profits from assets sold outside Cyprus are not taxed locally.

Residents also have access to international schools, English-speaking universities and the GESY public health programme. See our GESY guide.

What other advantages does living in Cyprus offer non-doms?

• Business-friendly environment: simple, affordable company setup and digitised government systems.
• Strategic location: between Europe, the Middle East and Africa, with international airports in Larnaca and Paphos.
• English-speaking legal and business services: the legal system is based on British common law.
• Climate and lifestyle: about 300 days of sunshine a year.

Why consider Cyprus for tax residency?

Lifestyle, healthcare and global connectivity complement the tax benefits, and the non-dom regime is described as one of the most generous in Europe. For residence routes, see our Cyprus residency permits guide.