The Ultimate EU Holding
Secure 0% Tax on Global Dividends and Interest for 17 Years. Fully Synchronized with the 2026 Tax Reform and the new €22.000,- Tax-Free Threshold.
The Cyprus Non-Dom status is a legal status granted to foreign tax residents that provides a 100% exemption from the Special Defence Contribution (SDC) on dividends, interest, and rental income for a period of 17 years.
Under the 2026 tax reform, this remains the premier wealth-compounding vehicle in Europe, allowing individuals to receive global passive income with 0% personal tax.
The Cyprus Non-Domicile (Non-Dom) regime remains the most powerful wealth-preservation tool in the European Union. Following the comprehensive tax reform voted on December 22, 2025, the regime has been preserved as a core pillar of the Cyprus economy, now enhanced by the abolition of the €350 annual levy and a higher €22,000 personal tax-free limit.
The Core Benefits of the Cyprus NON-DOMICILED Status:
To access the Non-Dom benefits, you must be a Cyprus Tax Resident but not Domiciled in Cyprus.
Step 1: Become a Tax Resident
Choose between the 183-Day Rule or the highly flexible 60-Day Rule. The 60-day rule requires:
Step 2: Establish Non Domicile Status
You qualify as a Non-Dom if:
The December 2025 vote introduced specific enhancements and compliance checks that every Non-Dom must navigate:
| Feature | Standard Resident (2026) | Non-Dom Resident (2026) |
| Dividend Tax (SDC) | 5% (Reduced from 17%) | 0% (Exempt) |
| Personal Tax-Free | €22,000 | €22,000 |
| Annual Levy | Abolished | Abolished |
| GeSY (Healthcare) | 2.65% (Capped at €180k) | 2.65% (Capped at €180k) |
| Lump Sum Alternative | N/A | €50,000/year option (New) |
2026 New Option: High-net-worth individuals who may acquire domicile through long-term stay can now opt for a €50,000 flat annual fee to maintain their SDC exemption for up to two 5-year periods.
| Income Type | Typical EU Resident (FR/DE/ES) | Cyprus Non-Dom (2026) |
| Global Dividends | 15% – 35% | 0% SDC Tax |
| Passive Interest | 20% – 45% | 0% SDC Tax |
| Rental Income (Intl) | Progressive Rates | 0% SDC Tax |
| Wealth / Inheritance Tax | 1% – 3% (Annual) | None |
| Effective Tax on €500k Dividends (example) | ~€150,000 | €4,820 (GeSY only) |
It means you pay 0% Special Defence Contribution (SDC) on dividends and interest. You still pay 2.65% GeSY (Healthcare) on this income (capped at €4,770/year). Your salary is taxed according to the 2026 bands starting at €22,000.
The main benefit is the total exemption from tax on dividends, passive interest income, and rental income from abroad for 17 years. Combined with the lack of inheritance, wealth, and gift taxes, it is the most efficient wealth-preservation regime in Europe.
The Non-Dom exemption is granted for 17 years. After 17 years of residency within a 20-year window, you are considered “deemed domiciled” and will start paying the standard resident rates.
Any individual who becomes a tax resident of Cyprus and was not born to a Cypriot-domiciled father (or has lived abroad for 20 years) qualifies. The status is granted after a formal application to the Tax Department once residency is established.
Foreign dividends and interest are tax-free. Foreign employment income is subject to personal income tax, but if you spend more than 90 days a year working outside of Cyprus for a non-resident employer, that income may be 100% exempt.
No. Physical presence (60 or 183 days) is required. However, we prepare all digital filings and local lease agreements so that your application is ready for submission the moment your 60-day count is reached.
