A. Benefits of Non-Dom Status in Cyprus:
1. 50% Employment Income Tax Exemption in Cyprus
Individuals who were not previously Cyprus tax residents may benefit from a 50% income tax exemption in Cyprus on their employment income.
This incentive, widely known as the Cyprus first employment tax exemption, is part of Cyprus’ strategy to attract high-skilled professionals and international talent.
Key Eligibility Criteria:
- Non-dom Cyprus requirement: No Cyprus tax residency for at least 15 consecutive years
- Minimum salary Cyprus tax exemption: Annual income exceeding €55,000
- Start date: Employment must commence on or after 1 January 2022
- Duration: Up to 17 years tax exemption Cyprus
This makes Cyprus one of the most attractive jurisdictions for expats, executives, and remote professionals.
2. 0% Inheritance and Gift Tax in Cyprus
Cyprus offers 0% inheritance tax and 0% gift tax, making it a leading destination for wealth planning and estate structuring in Europe.
3. 0% tax on worldwide dividends and interest
Enjoy 0% tax on dividends and interest received worldwide, significantly reducing the global tax liability.
4. Exemption from capital gains (apart from real estate)
Capital gains from the sale of securities are not taxable for non-doms in Cyprus.
5. 100% Income Tax Exemption for Overseas Employment
Remuneration from services rendered outside Cyprus for more than 90 days in a tax year to a non-resident employer or a foreign permanent establishment of a resident employer is completely exempt from Cyprus tax.
6. Pension Income Tax Benefits
Foreign pension income is taxed at a flat 5% rate on amounts exceeding €3,420 annually, making Cyprus a top destination for retirement tax planning.
B. Non-dom Requirements
183-day rule: An individual qualifies as a Cyprus tax resident if they spend more than 183 days in Cyprus within a tax year.
60-day rule: Under the Cyprus 60-day tax residency rule, individuals may qualify if they:
- Spend at least 60 days in Cyprus
- Do not spend more than 183 days in another country
- Are not tax residents elsewhere
- Maintain a permanent residence in Cyprus (owned or rented)
- Have business, employment, or hold an office in a Cyprus company at any time during the tax year
Tips: In practice, it is highly recommended that applicants are included in a Cyprus company payroll, as this supports both tax residency status and residence permit issuance. Additionally, the rental agreement should have a duration of more than one year and be duly certified by a Cypriot certifying officer.
C. Procedures and Timeline:
Step 1: Register a personal Tax Identification Number (TIN)
To obtain a Tax Residency Certificate in Cyprus, you will need a personal TIN. We will assist you in obtaining this once you arrive in Cyprus and upon receipt of your Yellow Slip.
Step 2: Confirm Tax Resident in Cyprus (After spending 60 or 183 days)
To obtain a Non-Dom Certificate, you must first confirm that you are a tax resident in Cyprus. We can assist you in obtaining the tax resident in Cyprus.
Step 3: Prepare Relevant Documents for Non-Dom Application
Complete the relevant Declarations and Questionaries.
Required documents include copies of the applicant’s passport, residence permits, tax IDs, parental status proofs, a recent utility bill, CV, etc.
Step 4: Submit Relevant Documents for Non-Dom Certificate
Estimated Time: The process is expected to take 2-3 weeks from the submission of the required documents.
D. Our Cyprus Non-Dom Services (End-to-End Support)
We provide full-service support for Cyprus non-dom applications, including:
- Preparation of Power of Attorney Cyprus
- Assistance with Cyprus tax residency certificate
- Document preparation and compliance review
- Submission of the Non-Dom Certificate Cyprus application
- Ongoing advisory until final approval
For the Cyprus 60-day rule, we also assist with:
- Cyprus company formation
- Cyprus company tax number registration Cyprus
- Payroll setup and payroll services Cyprus
- Personal tax identification number (TIN) Cyprus
- Full preparation of supporting documentation
- Ongoing support and maintenance of the Cyprus company