Cyprus Non-Domicile Status: Who Qualifies and What It Covers
Understand domicile for Cyprus tax, the exemption from special defence contribution on dividends and interest, and how to claim it.
Determine whether you are domiciled in Cyprus
Domicile for Cyprus tax purposes derives from origin and is not simply residence. A person is generally considered non-domiciled if they were not tax resident in Cyprus for a long defined period before the tax year, and those who are domiciled are outside the benefit.
Understand the benefit
A tax resident non-domiciled individual is exempt from special defence contribution on dividends, interest and rental income for a limited number of years. Salary and business income remain taxable under the regular rules.
Claim it in your tax return
Declare the status and the exempt income in your annual individual tax return and keep supporting evidence for audits. Ask your accountant to confirm the yearly eligibility, since changes in residence can affect it.
FAQ
Is the non-dom benefit permanent?
No, it is limited in duration. The period and rules are set by legislation, so ask your adviser to confirm the current term and any changes before you rely on it for planning.