Cyprus Non-dom Regime
A number of benefits can be enjoyed by tax residents of Cyprus who are not domiciled in Cyprus.
Legislation introduced mid 2015 exempts Cyprus non-doms from Cyprus’ Special Contribution to Defence Tax (SDC) and such individuals also benefit from a zero rate of tax on the following sources of income:
- Capital gains (other than on the sale of immoveable property in Cyprus – subject to the recently introduced partial exemption on newly acquired property)
- Capital sums received from payments made by pension, provident and insurance funds
These zero tax benefits are enjoyed even if the income has a Cyprus source and is remitted to Cyprus.
- In addition there are no wealth or inheritance taxes in Cyprus.
Other beneficial features of the Cyprus tax regime for individuals include:
- Income tax reduction for new personal income tax payers
- Low tax rate: foreign pensions
In addition a capital gains tax exemption applies to Cypriot immoveable property until 31 December 2016 and there is a 50% reduction in the land transfer fee relating to the disposal of Cyprus property until the same date.