How to become a Cyprus non-dom tax resident

To become a Cyprus Tax Resident you would have to first be present in Cyprus for more than 183 days in a calendar year. After you have spent 183 days in Cyprus, a Tax Residency Certificate is issued.

We usually apply for a Tax Identity Card simultaneously with the application for tax residency. 

Cyprus ‘Non-Doms’ Regime
 
If you have not been born or lived in Cyprus for the last 17-20 or more years, you qualify for the ‘non-dom’ tax residency status. 
 
A ‘non-dom’ tax resident is an individual who is a tax resident in one country (e.g. Cyprus) but their origins are from a different country, (e.g. Russia).

• A Cyprus tax resident individual, irrespective of his/her domicile status, is subject to income tax on his/her worldwide income, subject to exemptions 
• A Cyprus tax resident individual who is a non-dom is exempt from tax on worldwide dividend income and interest income
• A non-tax resident individual is subject to income tax on income accruing or arising only from sources within Cyprus

A person who is a non-don Cyprus tax resident enjoys the following benefits, for a period of at least 17 years:

• no Cyprus tax is payable on receipt of any dividend income from anywhere in the world (although on foreign dividends, the source country may withhold taxes);
• the provisions whereby a Cyprus tax-resident company must declare at least 70% of its after-tax accounting profits within two years do not apply to that proportion of shareholding beneficially owned by a non-Cyprus domiciled individual;
• no Cyprus tax is payable on receipt of interest income from anywhere in the world (although on foreign interest, the source country may withhold taxes).

Under the non-domicile rules, Cyprus tax resident individuals who are not domiciled in Cyprus are completely exempt from Special Contribution for Defence (SDC) on dividends (presently 17% of dividends received), interest (30% of interest received) and rental income (3%).

A non-tax resident individual is subject to income tax on income accruing or arising only from sources within Cyprus and is exempt from any Cyprus tax on dividend and interest income.

If you are interested in becoming a non-dom Tax Resident of Cyprus or for more information, you can contact us and we'll get back to you shortly!