Cyprus Non-Dom Status – No Tax on Dividends and Interest

Cyprus non-dom tax status by the 60-day rule, no tax on dividends and interest

Cyprus Non-Dom Status and the 60-Day Rule: A Tax Advantage for Expats

Cyprus has emerged as a leading jurisdiction for expats and international entrepreneurs seeking favourable tax treatment, thanks in part to its Non-Domiciled (Non-Dom) tax status and the innovative 60-day rule. These policies provide an attractive combination of tax benefits and flexibility, making Cyprus a hub for global professionals.

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What Is the Cyprus Non-Dom Status?

The Non-Dom regime in Cyprus exempts eligible individuals from taxes on certain types of foreign-sourced income, including dividends, interest, and, in most cases, capital gains. Moreover, non-domiciled individuals are not subject to the Special Defence Contribution (SDC), significantly lowering their overall tax burden. This makes Cyprus particularly appealing to high-net-worth individuals and business owners with substantial passive income streams.

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Understanding the 60-Day Rule

Introduced in 2017, the 60-day rule complements the Non-Dom status by allowing individuals who do not qualify under the traditional 183-day residency rule to still obtain Cypriot tax residency. To qualify under the 60-day rule, individuals must:

  1. Spend at least 60 days in Cyprus within a calendar year.
  2. Not be tax resident in any other country during the same tax year.
  3. Have no other permanent residence outside Cyprus.
  4. Maintain a permanent home (owned or rented) in Cyprus.
  5. Engage in business activity, employment, or hold an office in a company incorporated in Cyprus.

By meeting these conditions, individuals can secure Cypriot tax residency without committing to extended periods of physical presence. 

You may find more info on our respective page.

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Key Benefits of the Non-Dom Status by the 60-Day Rule

  1. Zero Tax on Dividends and Interest: Non-Dom residents are exempt from paying SDC (normally 17%) on foreign and domestic dividend and interest income.
  2. Access to Cyprus’s Double Tax Treaties: Cyprus has a network of over 60 treaties, minimizing the risk of double taxation.
  3. Low Corporate Tax: With a corporate tax rate of just 12.5%, Cyprus is one of the most competitive tax jurisdictions in the EU.
  4. No tax on the income from the disposal of securities (including listed and privately held company shares).
  5. Lifestyle Benefits: Cyprus offers a high quality of life, strategic location, and a stable business environment.

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Conclusion

The combination of Cyprus Non-Dom status and the 60-day rule provides an exceptional opportunity for individuals seeking tax efficiency and a flexible residency framework. Whether you’re an entrepreneur, investor, or remote worker, Cyprus offers a compelling solution to optimize your global tax strategy while enjoying the Mediterranean lifestyle.

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Contact us now…

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Disclaimer

Shanda Consult and the authors of this article explicitly disclaim any liability or responsibility to any individual, entity, or corporation that acts or fails to act based on any portion of this publication. Consequently, no individual, entity, or corporation should take action or rely on the information provided or implied in this publication without first seeking advice from a qualified professional or advisory firm like Shanda Consult, ensuring that the advice is tailored to their specific situation and circumstances.

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