Cyprus Non-Dom Tax Program

Cyprus has a special tax regime for non-domiciled individuals, known as the “Non-Dom” tax regime. This is arguably one of the more popular Non-Dom taxation programs in Europe. There is a reduced physical presence requirement compared to other similar Non-Dom tax programs. 

The regime is particularly attractive to high net worth individuals, entrepreneurs, freelancers and business owners who have income and assets located in multiple countries and who are looking for a tax-friendly jurisdiction in which to reside. 

What is Cyprus’ Non-Dom Residence Tax Program?

An applicant can be considered to be non-domiciled if they have been living in Cyprus not more than seventeen years and spend at least sixty days per year in the country. The Non-Dom tax regime in Cyprus is available to individuals who are seeking to minimize their tax liabilities and who are looking for a more tax-efficient way to manage their global income and assets. 

Who can apply to the Cypriot Non-Dom Residence Tax Program? 

To be considered a tax resident in Cyprus, an individual must spend 60 days or more in the country in a tax year. In order to apply for the Non-Dom tax regime in Cyprus, an individual must provide evidence that they are not tax resident in any other country, and they must demonstrate that they have a sufficient connection to Cyprus to justify being considered tax resident in the country.

Can Golden Visa Holders apply to Cyprus’ Non-Dom Residence Tax Program? 

Yes, Investors in the Golden Visa can apply to Cyprus’ Non-Dom Residence Tax Program. These investors need to follow the same physical presence requirements for all other residents using the non-dom taxation program.

What are the benefits of the Cypriot Non-Dom Residence Tax Program? 

Persons using the Non-Dom tax program are exempt from tax on dividends, and are liable for only a 2.65% on any profits from company dividends if it is registered in Cyprus. This allows business owners to use their own company to pay dividends as often as is required and use the Non-Dom tax program in their personal capacity. 

The program foregoes all remittance based taxation, and you can therefore hold, distribute, or move capital earnings internationally freely. There is an exemption on inheritance and gift tax. 

Potentially all income taxes could be voided if your foreign income (employment outside of Cyprus) is less than €19,500. There is ascending tax when earnings are above €19,500 up to 35% for income over €60,000.

What is the process for applying to Cyprus’ Non-Dom Residence Tax Program? 

The process for applying to Cyprus’ Non-Dom Residence Tax Program involves submitting an application to the Department of Inland Revenue. 

In January 2017, the tax residency regulations got amended into the 60-day rule. To become a Cyprus tax residence under the 60 days rules, you need to meet the following requirements:

• Be physically present in Cyprus for at least sixty days during a tax year; 
• Carry out business activities, be employed, or hold an office with a Cypriot registered company; and
• Show proof of a residence in Cyprus by either renting or owning a home.

Can a person apply to Cyprus’ Non-Dom Residence Tax Program before gaining a residence permit? 

Yes, a person can apply to Cyprus’ Non-Dom Residence Tax Program before obtaining their residency. However, applicants will need to provide proof of their residence application for Cyprus in order to be approved for Non-Dom status. 

How can I learn more about Cyprus’ Non-Dom Residence Tax Program?

To learn more specific information about the Cypriot Non-Dom taxation program contact one of our team members at MOVEANYWHERE. You can book a comprehensive consultation and ask detailed questions to get more familiar with the program. 

We understand that each of our clients’ cases and circumstances are unique. The MOVEANYWHERE’s team take this into consideration and if the Cypriot program is not the perfect fit for legally reducing your tax liability, they will provide alternative options. All you need to do is contact us today.