Service 09

Tax for Individuals & Non-Dom

Personal tax, residency and non-dom planning for individuals moving to or living in Cyprus.

At a glance

Dividend SDC (non-dom): 0%
Tax-free income: €22,000
Non-dom period: up to 17 years
Residency: 60-day or 183-day

In shortUpdated 1 June 2026

Cyprus taxes individuals on a residence basis, with the first €22,000 of income tax-free and progressive bands up to 35%. The standout feature is the non-domicile (non-dom) regime: individuals who become Cyprus tax resident but are non-domiciled pay no Special Defence Contribution on dividends, interest or rental income for up to 17 years. Combined with a 50% exemption for qualifying high earners, it makes Cyprus highly attractive for investors and professionals.

Tax-free income band: €22,000Tax-free income band
On dividends/interest (non-dom): 0% SDCOn dividends/interest (non-dom)
Non-dom exemption period: 17 yrsNon-dom exemption period
Days to become tax resident: 60 / 183Days to become tax resident

Cyprus is one of Europe's most attractive places to live and invest, and its personal tax regime is a big part of why. We help individuals — expats, investors, retirees, remote professionals and high earners — become tax resident efficiently and stay compliant.

The non-dom regime can exempt qualifying individuals from Special Defence Contribution on relevant dividends and interest. SDC on rental income was abolished generally from 2026. Combined with a €22,000 tax-free income band and a 50% exemption for qualifying high earners, Cyprus offers genuine, lawful tax efficiency.

Why clients choose us

Potential SDC exemption on relevant dividends and interest for qualifying non-doms
€22,000 of income tax-free, then progressive bands
50% exemption for qualifying new high-earning residents
A clear, compliant personal tax position

What's included

What our tax for individuals & non-dom covers

Personal income tax returns

Preparation and filing of your annual self-assessment return.

Tax residency planning

Becoming Cyprus tax resident under the 60-day or 183-day rules.

Non-dom status

Securing and maintaining non-domiciled status and its SDC exemption.

Relocation support

Coordinating your move, registrations and tax position end to end.

Investment & rental income

Correct reporting of dividends, interest, rents and foreign income — plus the 8% flat rate on qualifying crypto gains.

Pensions & high earners

The 5% flat option on foreign pensions and the 50% employment-income exemption.

2026 household allowances

Claiming the new allowances for a first-home loan or rent, green upgrades, insurance and dependent children.

How do you become a Cyprus tax resident?

There are two routes to Cyprus tax residency, and you only need to satisfy one:

Rule	Test
183-day rule	Spend more than 183 days in Cyprus in the tax year.
60-day rule	Spend at least 60 days in Cyprus, do not spend more than 183 days in any other country, and maintain ties to Cyprus — a home plus a business, employment or directorship.

The 60-day rule is what makes Cyprus practical for internationally mobile entrepreneurs and investors who do not want to spend half the year in any one country.

What does non-dom status save you?

Cyprus separates residence from domicile. You can be tax resident without being domiciled in Cyprus, and non-domiciled residents are exempt from the Special Defence Contribution (SDC) on dividends, interest and rental income. For someone living on investment income, this is the central benefit.

Worked example — non-dom on dividends

A non-dom resident receives €180,000 of dividends. A domiciled resident would pay 5% SDC; the non-dom pays nil SDC. Both pay the GHS (GeSY) contribution of 2.65% — but GHS is capped at €180,000 of income, so the maximum GHS is about €4,770. The effective tax on those dividends is therefore under 3%, and below 2% once income exceeds the GHS cap.

Non-dom status lasts up to 17 years, with the possibility of two further five-year periods subject to a lump-sum payment.

The 50% exemption for high earners

To attract talent, Cyprus offers a 50% exemption on employment income for qualifying individuals who take up first employment in Cyprus with remuneration above a set annual threshold. The exemption runs for a number of years and can dramatically reduce the effective rate on a senior salary. We confirm eligibility and apply it correctly on your return.

Crypto, pensions and the 2026 measures

Crypto-assets — gains on qualifying crypto/digital assets held as investment may be taxed at a flat 8% in defined cases.
Foreign pensions — taxed at a flat 5% on the excess over €5,000 per year, where that option is beneficial.
Employee share schemes — benefits from qualifying schemes taxed at 8%.
Ex-gratia payments — termination payments are tax-free up to €200,000, with the excess taxed at 20%.

New 2026 household allowances

The 2026 reform added allowances that reduce your taxable income, subject to income thresholds: interest on a first-home loan or rent (up to €2,000), green/energy-efficiency upgrades (up to €1,000), life and medical insurance premiums (up to €500), and €1,000 per dependent child. We claim every allowance you are entitled to. Try the 2026 allowances calculator to see the effect.

Filing your personal return

Cyprus tax residents file an annual self-assessment return reporting worldwide income (with the relevant exemptions applied). Filing is mandatory from age 25. We prepare and file the return, apply your non-dom exemption, employment exemption and allowances, and keep you compliant year to year.

Domiciled vs. non-domiciled resident

Both are Cyprus tax residents; the difference is in how passive income is taxed.

	Domiciled resident	Non-dom resident
SDC on dividends	5%	0%
SDC on interest	17% (3% on certain bonds)	0%
SDC on rents	Abolished (2026)	0%
GHS on the above	2.65% (capped at €180,000)	2.65% (capped at €180,000)
Duration of benefit	—	Up to 17 years

Who it's for

This service is built for the people and businesses below. Not sure if it fits? Tell us your situation and we'll point you the right way.

Expats and investors relocating to Cyprus
Non-doms living on dividend or investment income
High earners eligible for the 50% exemption
Retirees with foreign pension income

Transparent, fixed pricing

Fixed-fee personal returns and scoped relocation support.

View pricing & fees

Let's talk about your tax for individuals & non-dom

Book a free, no-obligation consultation with a qualified Cyprus adviser and get a clear quote before any work begins.

Get a Free Consultation +357 26 822 122

FAQ

Questions, answered

You qualify under the 183-day rule (physical presence over half the year) or the 60-day rule (60 days in Cyprus, ties to Cyprus such as a home and a business or employment). We assess which route fits and help you meet it.

Qualifying non-domiciled residents can be exempt from SDC on relevant dividends and interest, subject to the statutory domicile test. SDC on rent was abolished generally from 2026. Optional five-year extensions have separate eligibility and payment conditions. GHS and foreign taxes must be assessed separately.

Qualifying individuals taking up first employment in Cyprus with remuneration above a set threshold can exempt 50% of that employment income from tax for a number of years. We confirm eligibility and apply it correctly.

Domicile is a complex legal concept based on origin and intention. Individuals with a Cyprus domicile of origin can still qualify as non-domiciled for these purposes if they have been resident abroad for a long enough period, subject to anti-abuse rules. We assess your specific history before relying on the status.

No. Non-dom status removes SDC on dividends, interest and rents, but income tax on employment and business income, the GHS contribution, and other taxes still apply. The benefit is most powerful for those living on investment income.

Double tax treaties allocate taxing rights and provide tie-breaker rules to determine a single country of residence. With 65+ treaties, Cyprus usually offers a clear path. We analyse your treaty position so you are not taxed twice.

Go deeper

Guides & calculators

CalculatorCyprus Income Tax Calculator 2026See your Cyprus income tax across the 2026 bands.CalculatorCyprus Net Salary Calculator 2026Estimate gross-to-net pay with 2026 tax, employee Social Insurance and GHS.CalculatorCyprus Tax Residency CalculatorScreen the 183-day and 60-day individual residence tests.CalculatorCyprus 2026 Tax Allowances CalculatorHousehold allowances, crypto gains (8%) and ex-gratia payments.Personal TaxThe Cyprus Non-Dom Regime Explained (2026)Cyprus non-doms pay 0% on dividends, interest and rents under SDC. Here is how the regime works in 2026, who qualifies and what it really saves you.Tax ReformCyprus Tax Reform 2026: What Changed and What Stayed the SameThe 2026 Cyprus tax reform raised corporate tax to 15%, cut dividend SDC to 5%, lifted the tax-free band to €22,000 and kept the non-dom regime intact.

Practical guides for this service

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Ready to get your numbers in order?

Book a free, no-obligation consultation. We'll review where you stand and show you exactly how we can help your business or personal finances in Cyprus.

Book a Free Consultation WhatsApp us +357 26 822 122

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Part of the Philippou Law Firm group