NICOSIA — Cyprus continues to attract global professionals, retirees, and investors with its Non‑Domiciled (Non‑Dom) tax regime, offering substantial benefits for those who qualify as non‑domiciled tax residents. In 2025, this framework remains one of the most generous in Europe, reinforcing Cyprus’s appeal as a hub for relocation and investment.
Who Qualifies for Non‑Dom Status?
Tax residency can be achieved through two main routes:
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Spending 183 days in Cyprus within a single tax year, or
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Satisfying the 60‑day rule, which requires maintaining a permanent home (owned or rented), establishing economic ties, and not being tax resident elsewhere.
Applicants must also confirm they were not Cyprus tax residents for 17 of the previous 20 years to qualify as non‑dom.
Core Tax Benefits
The non‑dom regime offers a full exemption from the Special Defence Contribution (SDC) on worldwide dividends, interest, and rental income for 17 consecutive years. This means dividends and most foreign interest income are tax-free.
Employment income is taxed progressively, but high-earning new residents (earning above €55,000 annually) can claim a 50% first-employment exemption for up to 17 years. Those earning between €20,000 and €55,000 may qualify for a 20% exemption for seven years.
Pension and Retirement
Cyprus is particularly attractive for retirees. Foreign pension income above €3,420 annually can be taxed at a flat 5% rate, providing simplicity and predictability in long-term financial planning.
Flexible Residency Options
The 60‑day rule benefits location-independent professionals who require flexible residency. This structure allows remote workers and investors to establish Cyprus tax residency while minimizing physical presence requirements.
Why Cyprus?
With no wealth, inheritance, or capital gains tax on foreign assets, Cyprus stands out for wealth preservation. Its EU membership, English-speaking environment, low cost of living, and robust professional services make it a prime choice for expats, entrepreneurs, and high-net-worth individuals.
By combining non-dom status, progressive tax incentives, and flexible residency rules, Cyprus continues to rank among the top jurisdictions in Europe for financial and lifestyle benefits.
