CYPRUS: Non–Domicile Tax Rules & Relocation

It offers many opportunities and several benefits for businesses and individuals to work fully or partly from Cyprus.


Cyprus with its attractive tax regime, great quality of life, and stable political climate, could be an ideal location to reside. The various tax exemptions can certainly be utilized to effectively structure your tax liability.


The 60-day Rule combined with the applicable ‘Non-Dom’ regime has proven extremely popular with location-independent entrepreneurs, business people, investors or Digital Nomads
(people working remotely; ask for further information), and family Cyprus Non-domicile Status.

In case of receipt of passive income may be eligible for a Non-dom Status. The latter allows Cyprus tax resident individuals, not born in Cyprus and have not lived in Cyprus to benefit from
a complete 17-year exemption from taxes, that is Special Defence Contribution (SDC), levied on interest and dividend income. A zero-tax rate on passive income is surely a preferred bonus
over the standard 17% rate on dividends and a 30% rate on interest income for Cyprus-domiciled individuals.

Main Tax Benefits for an Individual that Chooses to Become a Cyprus Tax Resident 

Individuals who are Cyprus tax residents, whether under the “60-day rule” or under the “183-day rule” are taxed in Cyprus on their worldwide income, however, certain exceptions apply, as follows:

  • A Cyprus tax resident individual but non-domiciled in Cyprus is exempt in Cyprus from taxation on his/her worldwide dividend and ‘passive’ interest income (e.g. interest and rental
    income) under the ‘Cyprus Non-Domiciled Tax Status’ (as above).
  • Profit from the sale of securities is exempt from tax in Cyprus. ‘Securities’ include, inter alia, shares in local or foreign companies, bonds, debentures, options, etc., except in cases
    where the value of the shares derives from the value of immovable property in Cyprus.
  • The 50% exemption rule:
    Individuals who take up employment in Cyprus with an annual income in excess of €100.000 will be eligible for an exemption from taxation of 50% of their income for a period of 10
    years, commencing from the year of employment, provided that he/she has not been a tax resident of Cyprus three out of the five years preceding the year of employment.
  • The 20% exemption rule: Individuals who take up employment in Cyprus and were not tax residents in Cyprus prior to commencing such employment will be eligible for an exemption from taxation of 20% of their income or €8.550 (whichever is lower) from any employment which is exercised in Cyprus.
  • Income from employment carried out outside Cyprus is exempted from Cyprus income tax, provided that the employment exercised outside Cyprus exceeds 90 days per tax year.
  • Low Tax Rate in respect of Foreign Pensions, taxed in Cyprus at the flat rate of 5% for amounts more than €3,420.
  • No inheritance tax, no wealth tax, no gift taxation, no immovable property taxes.

Further Benefits

  • Right to live and work anywhere in the EU, if you are an EU citizen.
  • Access to the country’s excellent healthcare system and high educational standards.
  • Safe country and excellent lifestyle.

Definition of Non-Domiciled Persons

In accordance with the provisions of the wills and Succession Law, there are two kinds of domicile:

- The domicile of origin, which is received at birth (generally depending on the father’s side), or
- The domicile of choice, which is acquired by a physical presence in a particular place and by demonstrating a sufficient intention to make it the place of permanent residence.

 Tax Residency Rules for Individuals

A person who satisfies any of the below criteria can receive a tax residence certificate by submitting a written application and supporting evidence documentation.

  • The 183 days rule: A person resides in Cyprus for one or more periods exceeding a total of 183 days in the tax year.
  • The 60 days rule: A person resides in Cyprus for at least sixty (60) days in the tax (calendar) year. Moreover, need to meet all the below criteria:

1. He/she carries out any business in Cyprus; and/or works in Cyprus and/or holds an office in a company that is tax resident in Cyprus during the tax year; and

2. He/she maintains a permanent residence in Cyprus (owned or rented); and

3. He/she does not reside in any other single state for a period exceeding 183 days, and

4. He/she is not a tax resident in any other state.

Next Step

Book a preliminary teleconference consultancy meeting. Our experienced team can assist you with the procedures of obtaining Cyprus Tax Residency status & Advisory for Relocation.

This email address is being protected from spambots. You need JavaScript enabled to view it. | Tel: +357 22 669017.


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Office Locations

Head office

2 Christ. Sozos Str. Eiffel Tower, 1096 Nicosia, Cyprus
P.O.Box 21855, 1514 Nicosia, Cyprus

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Limassol / Lemesos
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