Cyprus Non-Dom Status (2025 Guide)

The Cyprus Non-Domiciled regime provides significant tax advantages to individuals who become Cyprus tax residents while not being considered domiciled under Cypriot legislation. This guide summarises the eligibility rules, residency tests, tax exemptions and the application process.

What Is the Cyprus Non-Dom Regime?

The Non-Dom regime exempts qualifying individuals from Special Defence Contribution (SDC) tax on:

• dividends (0%)
• interest income (0%)
• rental income SDC (0%) – only the GHS contribution applies

The regime is designed to attract foreign professionals, investors and business owners relocating to Cyprus.

Who Qualifies for Non-Dom Status?

An individual qualifies for the Cyprus Non-Dom regime if the following applies:

1. They are a Cyprus tax resident under either:
   • the 183-day rule, or
   • the 60-day rule
2. They are not domiciled in Cyprus, meaning:
   • they were not born in Cyprus,
   • they do not have a Cypriot domicile of origin, and
   • they have not lived in Cyprus for 17 of the last 20 years

The 183-Day Residency Rule

You qualify as a Cyprus tax resident if you spend 183 days or more in Cyprus in a calendar year. No additional criteria apply.

Calculating days: a day in Cyprus counts if you are physically present on the island at midnight.

The 60-Day Residency Rule

You may become a Cyprus tax resident under the 60-day rule if all of the following conditions are satisfied:

• You spend 60 days or more in Cyprus in a calendar year.
• You do not spend 183+ days in any other country.
• You are not a tax resident of any other country.
• You maintain a permanent residential property in Cyprus (owned or rented).
• You carry out a business activity in Cyprus, or are a director of a Cyprus tax-resident company.

Key Tax Exemptions Under the Non-Dom Regime

1. SDC on dividends — 0%

Applies to worldwide dividends.

2. SDC on interest — 0%

Includes bank interest, deposits, bonds and foreign investment instruments.

3. SDC on rental income — 0%

Only GHS at 2.25% applies.

4. Foreign-sourced income

Foreign income is generally exempt unless connected to employment exercised in Cyprus.

Examples of Eligibility

Example 1 — Relocating professional

• 75 days in Cyprus
• 150 days spent across multiple countries
• Director of a Cyprus company
• Rented apartment in Limassol

Eligible under the 60-day rule + Non-Dom.

Example 2 — IT contractor travelling full-time

• 45 days in Cyprus
• Spends 200+ days in another country

Not eligible.

Example 3 — Born in Cyprus but living abroad

• Tax resident under the 183-day rule
• Born in Cyprus (domicile of origin = Cyprus)

Not eligible.

Non-Dom vs Domiciled — Comparison Table

Criteria	Non-Dom	Domiciled
Dividend SDC	0%	17%
Interest SDC	0%	30%
Rental SDC	0%	3% (effective 2.25%)
17/20 rule applicability	Yes	Yes
Loss of status	After 17 years	Not applicable

Non-Dom Application Steps

1. Confirm you meet the 60-day or 183-day residency rule.
2. Verify domicile eligibility using the 17/20 rule.
3. Prepare the following documents:
   • Passport / ID
   • Rental contract or title deed
   • Employment contract or director appointment
   • Cyprus Tax Identification Code (TIC)
4. Submit:
   • TD38 — Non-Domicile declaration
   • TD1 — Tax residency certificate
5. Keep documentation for at least 6 years (audit requirement).

Frequently Asked Questions (FAQ)

Do I need to apply every year for Non-Dom status?

No. Non-Dom is a long-term status. Once granted, it remains valid until you become domiciled in Cyprus under the 17/20 rule.

If I meet the 60-day rule this year, do I automatically qualify next year?

No. The 60-day rule must be met each calendar year separately. If you fail any condition, you are not considered a Cyprus tax resident for that year.

Does Non-Dom apply to inherited property or foreign investments?

Yes. Non-Dom applies to worldwide dividends and interest, including income from shares, bonds, deposits or inheritance assets located outside Cyprus.

Do I pay tax on salary from a foreign employer?

Employment exercised outside Cyprus may be exempt. Employment exercised in Cyprus is subject to income tax under standard rates.

Does Non-Dom prevent me from paying GHS?

No. Non-Dom affects only SDC. Contributions to GHS (2.65% on income received) still apply.

Can I lose Non-Dom status?

Yes. If you become domiciled in Cyprus by living 17 of the last 20 years in Cyprus, the status is lost automatically.

Do I need a lawyer or agent to apply?

No. TD38 and TD1 can be submitted independently at the Cyprus Tax Department or through KEP centres.

Can Non-Dom be granted retroactively?

No. Residency and Non-Dom apply on a per-year basis and cannot be granted for previous years.

Does the 60-day rule allow remote work in Cyprus?

Yes. Remote work is accepted provided that you maintain a contract or business activity connected to Cyprus.

Does renting a room qualify as having a permanent residence?

Yes, if the rental agreement is legally valid and registered.

Can I apply if I live in hotels or Airbnb?

No. The 60-day rule explicitly requires a permanent residential property (owned or rented on a contract).

Is there a minimum income requirement?

No. The law does not set a minimum income threshold for Non-Dom status.

Automated Non-Dom Eligibility Checker

The tool below evaluates your residency and prepares the complete Non-Dom document package automatically.