Cyprus residency and non-dom planning
For internationally mobile founders, investors and families, Cyprus can combine EU residence, a clear tax-residency framework and valuable non-dom treatment. The opportunity starts with eligibility, substance and a properly sequenced move.
One move, two separate tests
This distinction is the core of the Cyprus opportunity. Residence determines where you are taxed as a resident. Domicile is a separate concept used for Special Defence Contribution purposes.
An individual may qualify under the 183-day rule or, if every condition is satisfied, the 60-day rule. Tax residence can bring worldwide income within the Cyprus tax framework, subject to domestic law and applicable treaties.
An eligible Cyprus tax resident who is not domiciled in Cyprus can be exempt from Special Defence Contribution on dividend and interest income. It does not mean the person is non-resident, and it does not exempt every income category or levy.
The 60-day rule
The 60-day route is not a simple day-count shortcut. For the relevant tax year, the individual must meet each condition.
Spend at least 60 days in Cyprus during the tax year.
Do not spend more than 183 days in any other single state.
Do not qualify as tax resident in another state for that year.
Carry on business, be employed, or hold an office in a Cyprus tax-resident company, subject to the continuity requirement.
Maintain a permanent residential property in Cyprus that you own or rent.
The commercial case
The strongest case is not one headline rate. It is the combination of personal status, business infrastructure and a credible EU base.
The exemption concerns Special Defence Contribution. Other taxes or contributions may still apply.
A non-dom can generally become deemed domiciled after being Cyprus tax resident for at least 17 of the preceding 20 tax years.
Effective taxation depends on residence, management and control, substance, activity, deductions and anti-avoidance rules.
Cyprus combines EU membership and the euro with an internationally oriented professional-services market.
Cyprus has an established treaty network. Entitlement must be tested against the facts of each arrangement.
The legal system is substantially based on English common-law principles, alongside Cyprus and EU legislation.
Important: “Zero tax on dividends and interest” is often used as shorthand, but the accurate claim is an exemption from Special Defence Contribution for eligible Cyprus-resident non-doms. Income tax, General Healthcare System contributions, source-country tax, anti-avoidance rules and foreign-country exit or residence rules may still matter.
Who this is for
Our approach
Taxceo coordinates the commercial and administrative workstream with appropriately qualified Cyprus and home-country advisers where regulated, legal or specialist tax advice is required.
Map travel days, current residence, domicile history, income, economic links and housing requirements.
Identify exit-tax, permanent-establishment, management-and-control, social-security and treaty questions.
Sequence residence, housing, company or employment arrangements, registrations and recurring compliance.
Start with an eligibility-led conversation about your travel pattern, income, business and current country of residence.
Request a Cyprus planning review