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:

  1. Interest
  2. Dividends
  3. Capital gains (other than on the sale of immoveable property in Cyprus – subject to the recently introduced partial exemption on newly acquired property)
  4. 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:

  1. Income tax reduction for new personal income tax payers
  2. 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.