# Cyprus: Non-Dom and the 60-Day Rule > Cyprus non-dom status: 0% tax on dividends and interest for up to 17 years (SDC exemption), 60-day tax residency rule, GeSY contribution, residence permits and permanent residency. Author: Мария Плотникова — юрист, Family Office (https://wiki.private.law/authors/plotnikova) Last modified: 2026-07-21T09:26:00.000Z Canonical: https://wiki.private.law/en/cyprus-non-dom Topics: investments, migration Jurisdictions: cyprus Product tags: tax-regime, non-dom, wealth-planning, residence-permit Semantic tags: tax-regime, non-dom, wealth-planning, residence-permit --- ## Concept > 🔗 **Related** > [UK non-dom reform 2025](https://wiki.private.law/en/uk-non-dom-2025) Cyprus is an EU member state that assembled its regime for mobile high-net-worth individuals long ago. It rests on two pillars: non-dom status and the 60-day rule. A non-dom (a resident without Cypriot domicile) pays 0% on dividends and interest; the 60-day rule lets you become a tax resident without living on the island for half the year. After the United Kingdom wound down its own non-dom in 2025, Cyprus remained one of the few EU jurisdictions with a long window of zero tax on passive income. > 🍓 Against the backdrop of the UK abolishing non-dom (2025), the Cypriot regime survived the 2026 tax reform: 0% on dividends and interest is preserved for 17 years. Moreover, from 2026 it became possible to extend the exemption by two five-year blocks (up to 27 years in total) by paying €250,000 per block. ## Where the Regime Came From Cyprus built its tax showcase step by step. After the 2013 banking crisis the island set about attracting capital and residents: in 2015 it introduced non-dom status with zero SDC on dividends and interest, in 2017 the 60-day rule for frequent travellers, and in 2022 incentives for new high-earning employees. The 2026 reform reshuffled rates and thresholds but kept both pillars and added a paid mechanism to extend non-dom beyond 17 years. ## 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); - **the 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 do not spend more than 183 days in any other single country. The former condition of "not being a tax resident of another country" was removed from the law by the 2026 reform. 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); a conflict with another country's residency is settled through the treaty (DTT) tie-breaker. ## What Non-Dom Status Provides > 🔗 **Related** > [Cyprus holding company](https://wiki.private.law/en/company-cyprus) A resident not domiciled in Cyprus is exempt from the Special Defence Contribution (SDC). For a domiciled resident, SDC is 5% on dividends (17% before the 2026 reform) and 17% on interest; a non-dom pays under neither line. That is where "0% on passive income" comes from. - **0%** on dividends and interest — regardless of source — for 17 years (the non-dom rule: 17 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** — ordinary 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. The 2026 reform — Law 207(I)/2025, passed on 22 December 2025 and in force from 1 January ([KPMG](https://kpmg.com/xx/en/our-insights/gms-flash-alert/2026/flash-alert-2026-070.html)) — changed the parameters but left the non-dom core in place. The income-tax tax-free allowance was raised from €19,500 to €22,000, and the top 35% rate now starts at €72,000 instead of €60,000. For domiciled residents, SDC on dividends was cut from 17% to 5% (on profits earned from 2026), deemed dividend distribution was abolished for 2026-onwards profits, and corporate loss carry-forward was stretched from 5 to 7 years. Corporate tax rose from 12.5% to 15% — the level of the Cyprus holding company, which does not affect personal non-dom. The "year-18 cliff" also softened: once non-dom runs out, a domiciled resident's dividends are taxed at 5%, not the former 17%. ## Domicile and the 17-Year Rule > 🔗 **Related** > [Domicile, residence and citizenship in succession](https://wiki.private.law/en/domicile-residence-succession) · [CFC](https://wiki.private.law/en/eu-atad-cfc) · [exit rules](https://wiki.private.law/en/exit-taxes-overview) Non-dom rests on the distinction between domicile and residence. Domicile of origin is inherited at birth and hard to change: it takes a domicile of choice — relocating with the intention of staying permanently. As long as the domicile of origin remains outside Cyprus, you are a resident without Cypriot domicile, and SDC on dividends and interest is zero. But the law treats as domiciled anyone who has been a Cypriot tax resident for 17 of the last 20 years — hence the seventeen-year boundary. More detail is in [Domicile, residence and citizenship in succession](https://wiki.private.law/en/domicile-residence-succession). Before 2026, everything ended at seventeen years. From 1 January 2026 a paid mechanism appeared: someone whose domicile of origin is outside Cyprus can extend the zero SDC by two five-year blocks — up to 27 years in total — by paying €250,000 for each block. The payment is non-refundable and made in full; the application is generally filed by 30 June of the first year of the block (for those who became domiciled in 2024-2025 a transitional deadline of 30 June 2026 applies). > 💡 The €250,000 extension pays off where five years of zero SDC save noticeably more than the payment — with a large dividend or interest stream. With moderate passive income it is wiser to plan a change of base in advance, keeping in mind the CFC and exit rules of the country you leave. ## 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 > 🔗 **Related** > [Cyprus holding company](https://wiki.private.law/en/company-cyprus) · [Holding structures](https://wiki.private.law/en/holding-structures) **Holding company and dividends.** For someone who lives on dividends or interest, non-dom gives 0% SDC (plus GeSY up to the ceiling). It is often paired with a Cyprus holding company or a wider holding structure: the company distributes dividends to the non-dom individual without SDC, while at the company level EU directives and the treaty network apply. **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 > 🔗 **Related** > [Tie-breaker](https://wiki.private.law/en/tax-residency-tiebreaker) · [CFC](https://wiki.private.law/en/eu-atad-cfc) · [Exit rules](https://wiki.private.law/en/exit-taxes-overview) · [Economic substance](https://wiki.private.law/en/economic-substance) - non-dom does not equal zero on everything: salary is taxed, there is GeSY and tax on Cypriot real estate; - since 2026 the 60-day rule no longer requires the absence of tax residency in another country, but if two residencies conflict the outcome is decided by the treaty tie-breaker — the analysis is essential; - controlled foreign companies (CFC) and the exit rules of the country you are leaving; - substance: "accommodation + business" for the 60 days must be real — formal ties do not pass the substance test. ## Frequently Asked Questions > 🔗 **Related** > [Greek non-dom at €100,000/year](https://wiki.private.law/en/greece-non-dom) · [Beckham Law](https://wiki.private.law/en/beckham-law) · [Thailand: tax on foreign income](https://wiki.private.law/en/thailand-foreign-income-tax) · [Turkey: 20 years without tax on foreign income](https://wiki.private.law/en/turkey-tax-holiday) · [Cyprus holding: 15% corporate tax and IP box](https://wiki.private.law/en/company-cyprus) · [UK non-dom reform 2025: FIG and TRF](https://wiki.private.law/en/uk-non-dom-2025) ### 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 and no more than 183 days in any other single country; the condition of not being a tax resident of another country was abolished from 2026. ### 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. Cyprus remains a place where 0% on passive income combines with EU membership and predictable law. The 2026 reform confirmed this: thresholds shifted, but non-dom and the 60-day rule are intact, and those who hit 17 years now have a paid way out to 27. Neighbouring regimes — the Greek non-dom at €100,000 a year or the Spanish Beckham Law — solve similar problems in their own way, and the choice comes down to income structure and relocation plans. > 🍓 Bottom line: 0% on dividends and interest for 17 years (from 2026 — up to 27 for €250,000 per block for those whose domicile of origin is outside Cyprus), tax residency in 60 days with real ties, permanent residency for real estate from €300,000. The effective price of non-dom is only GeSY 2.65% up to the €180,000 income ceiling. **Primary source**: [Cyprus — Individual taxes on personal income and residence (PwC Tax Summaries)](https://taxsummaries.pwc.com/cyprus/individual/taxes-on-personal-income) --- ## Sources - [KPMG](https://kpmg.com/xx/en/our-insights/gms-flash-alert/2026/flash-alert-2026-070.html) - [Cyprus — Individual taxes on personal income and residence (PwC Tax Summaries)](https://taxsummaries.pwc.com/cyprus/individual/taxes-on-personal-income) --- ## 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 and no more than 183 days in any other single country; the condition of not being a tax resident of another country was abolished from 2026. ### 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. --- ## Factual claims - The 2026 reform — Law 207(I)/2025, passed on 22 December 2025 and in force from 1 January (KPMG) — changed the parameters but left the non-dom core in place. - Before 2026, everything ended at seventeen years. - Cyprus remains a place where 0% on passive income combines with EU membership and predictable law.