Concept
Cyprus is an EU member state with one of the most convenient regimes for mobile high-net-worth individuals. The key structure is non-dom status (resident but not domiciled): under this status, dividends and interest are taxed at 0%. The second is the 60-day tax residency rule, convenient for those who travel extensively.
🍓 Against the backdrop of the UK abolishing non-dom status (2025), the Cyprus regime underwent tax reform in 2026: the 0% rate on dividends and interest has been preserved for 17 years. Moreover, from 2026 it became possible to extend the exemption by two 5-year blocks (up to 27 years total) by paying €250,000 per block.
Tax Residency: 183 Days or 60 Days
Cyprus offers two tax residency tests:
- 183 days — the standard rule (more than 183 days in a calendar year);
- 60-day rule — you can become a resident by spending at least 60 days in Cyprus if: you have accommodation (owned or rented), you have a business, employment or position in Cyprus, and you are not a tax resident of another country and do not spend more than 183 days in any other single country.
The 60-day rule is precisely what makes Cyprus attractive for mobile individuals: you don't need to live 183+ days, but you need real ties (accommodation + business) and no tax residency elsewhere.
What Non-Dom Status Provides
A resident not domiciled in Cyprus is exempt from the Special Defence Contribution (SDC).
- 0% on dividends and interest — regardless of source — for 17 years (non-dom rule: 17 out of the last 20 years); from 2026 — extension in blocks up to 27 years for €250,000/block;
- capital gains: tax only on Cypriot real estate; foreign capital gains — 0%;
- salary and other income — standard progressive income tax (up to 35%, with a tax-free allowance); for new residents with high employment income there is a 50% exemption;
- GeSY contribution (for healthcare) 2.65% on dividends/interest/rent, with an income ceiling of €180,000 (max. ≈€4,770/year) — this is the effective "price" for non-doms on dividends up to the ceiling.
Caveat: the 2026 tax reform affected certain parameters (income tax rates/thresholds), but non-dom status itself has been preserved.
Immigration: Residence Permits and Permanent Residency
- Permanent residency through investment: purchase of real estate from €300,000 (plus VAT) — fast-track permanent residence permit with confirmed foreign income;
- employment and business routes, company registration;
- Cyprus is an EU member but not part of Schengen.
Scenarios
Holding company and dividends. For those who live on dividends or interest, non-dom provides 0% (plus GeSY up to the ceiling).
Mobile entrepreneur. The 60-day rule suits those who don't want to be tied to 183 days but are ready to create real ties.
Family with multiple residencies. Cyprus as a tax home for passive income while maintaining business in other jurisdictions.
Risks
- non-dom does not equal zero on everything: salary is taxed, there is GeSY and tax on Cypriot real estate;
- the 60-day rule requires absence of tax residency in another country — treaty tie-breaker analysis is needed;
- controlled foreign companies (CFC) and exit rules of the departure country;
- substance: "accommodation + business" for the 60 days must be real.
Frequently Asked Questions
What is the tax on dividends for non-doms?
0% SDC. In practice, only the GeSY contribution of 2.65% remains, with an income ceiling of €180,000 (max. ≈€4,770 per year).
How many years does non-dom status last?
17 years; from 2026 it can be extended by two 5-year blocks (up to 27 years) for €250,000 per block.
What is the 60-day rule?
You can become a tax resident by spending 60 days in Cyprus if you have accommodation and business/employment in Cyprus, no tax residency in another country, and no more than 183 days in any other single country.
Is it necessary to buy real estate?
For non-dom — no. For fast-track permanent residency through investment — from €300,000 in real estate. These are different things: tax status and immigration status.
FAQ
What is the tax on dividends for non-doms?
0% SDC. In practice, only the GeSY contribution of 2.65% remains, with an income ceiling of €180,000 (max. ≈€4,770 per year).
How many years does non-dom status last?
17 years; from 2026 it can be extended by two 5-year blocks (up to 27 years) for €250,000 per block.
What is the 60-day rule?
You can become a tax resident by spending 60 days in Cyprus if you have accommodation and business/employment in Cyprus, no tax residency in another country, and no more than 183 days in any other single country.
Is it necessary to buy real estate?
For non-dom — no. For fast-track permanent residency through investment — from €300,000 in real estate. These are different things: tax status and immigration status.
Key factual claims
- The 60-day rule is precisely what makes Cyprus attractive for mobile individuals: you don't need to live 183+ days, but you need real ties (accommodation + business) and no tax residency elsewhere.
- Caveat: the 2026 tax reform affected certain parameters (income tax rates/thresholds), but non-dom status itself has been preserved.