What is non-dom status in Cyprus?

What is non-dom status in Cyprus?

Under the Special Contribution for the Defence Law 117(I)/2002, an individual who is a Cyprus tax resident but not domiciled in Cyprus is treated as non-domiciled for defence-contribution purposes. It applies to people who make Cyprus their tax home — via the 183-day or 60-day test — but whose permanent domicile remains abroad. There is no separate application; the status is recorded when you register for a Cyprus Tax Identification Number.

What does the SDC exemption mean in practice?

A non-domiciled resident pays 0% Special Defence Contribution on worldwide dividends and interest — a significant saving versus domiciled residents. Cyprus also has no capital gains tax on most assets and no inheritance tax. One caveat: a 2.65% General Health System (GESY) contribution still applies to dividends, so non-dom status reduces but does not always eliminate every levy. SDC on rental income was abolished for all taxpayers from 1 January 2026 under Law 245(I)/2025, so rents are no longer a non-dom-specific benefit.

Who qualifies for non-dom status and for how long?

Non-dom status arises automatically for anyone who becomes a Cyprus tax resident and has not been tax-resident in Cyprus for at least 17 of the previous 20 years (the deemed-domicile threshold). The benefit lasts up to 17 tax years, after which standard SDC rates apply. Because the rules interact with your wider tax position and the 2026 reform, it is worth taking advice before relying on the status.