Getting tax residency status of Non-Domicile in Cyprus

Non-Domicile status is a special tax residency status in Cyprus. To become a tax resident of the country, you must live on the island for 183 days (or 60 days) in one calendar year. However, those who permanently reside in the country are awarded the status of Domicile, and those who do not always live - Non-Domicile (non-domiciled tax resident status). And it is in the latter case you will have more tax benefits.

Non-Dom status in Cyprus can be awarded to a Cypriot tax resident who has not resided on the island for 17 years out of the last 20 years preceding the tax year. This is the status of relocated, native residents — predominantly domiciled residents.

Important: You can be a resident of several countries and have several citizenships, but you can only be domiciled in one country.

Tax residency status in Cyprus

What are the statuses:

• Domicile — a person born in Cyprus and/or has lived in Cyprus for 17 out of the last 20 years.
• Non-Domicile — all other tax residents.

What does Non-Domicile status in Cyprus?

Tax residents of Cyprus with Non-Domicile status have certain benefits on taxes and are exempt from specific contributions.

If you have Non-Domicile status, you will not pay taxes on it:

• dividend income;
• income from interest;
• income from rental property (rental income will only be subject to income tax at ordinary income tax rates (after a 20% deduction));
• revenue from selling stocks, bonds, and other similar cash sources (e.g., options and ratios).

You get the opportunity not to reside in the Republic permanently but to reduce the cost of business taxation. If you become a tax resident, you will pay only general income tax at a progressive rate — the first 19,500 € of income per year is not taxed, then the rate of 20%, which for each subsequent amount increases by 5%. When you reach 60,000 € per year, the rate of 35% is fixed, and all following income is taxed at this rate.

How to become a tax resident of Cyprus and get the status of Non-Domicile?

To become a tax resident, you must meet the following requirements:

• you must be resident in Cyprus for 183 days in the relevant tax year, and you must not reside more than 183 days per year in any other country in the world;
• under the 60-day rule, you need to stay in Cyprus for at least 60 days in the relevant tax year and meet the following conditions:
• not be or have been declared a tax resident of another country;
• conduct a business or work in Cyprus or occupy an office with a tax resident of Cyprus during the relevant tax year;
• purchase immovable property in Cyprus with the right of ownership or long-term lease of an apartment/house.

How do I get Non-Domicile status in Cyprus?

You can become a resident either as an individual or by registering a Cypriot company with foreign participation. The procedure in each case will be slightly different, but in both cases, you will need to comply with the main points:

1. Get a tax number (TIN).
2. Get tax resident status (after 60 or 183 days of living in Cyprus).
3. Submit a set of documents for Non-Dom status.
4. Receive the appropriate certificate in about two weeks.

Contact SPM — we provide not only the search for property and support for its purchase but also legal services: we will advise you on how to become a tax resident of Cyprus, advise you on what documents you need to gather, and take care of all the applications to the relevant authorities.

Your most valuable contact in Cyprus — SPM.

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