Cyprus Introduces a Non-Domicile Tax Residency Regime The Non-Dom Tax Residency Regime was introduced by the Cypriot government on July 2015, by virtue of an amendment of the Special Defence Contribution tax law. The objective is to attract foreign investments, high-earners and permanent residents to Cyprus. Pursuant to the Non-Dom Regime, an individual who becomes a tax-resident of Cyprus, but not domiciled, should spend at leats 183 calendar days per year in Cyprus and he will be exempt from the Special Defence Contribution. The amendment makes holding of dividends, bank deposits, investments in shares and bonds by non Cyprus residents more attractive, should they decide to relocate their tax residency to Cyprus and stay here for at least 183 calendar days per tax year. Any individual who is tax-resident of Cyprus, but not domiciled, will be exempt from Special Defence Contribution, meaning no tax on dividend, interest and rental income, and subject only to Income Tax: As a tax resident of Cyprus, personal income tax rates on a salary derived from employment vary from 0%-35% (first €19.500 is tax free). Additional exceptions for high-paid, non-resident, individuals, taking residence in Cyprus: 50% exception for individuals taking employment in Cyprus, with income exceeding €100.000 per year for a period of 5 years. Exemption from Income Tax for Euro 8.543 or 20% for individuals taking employment in Cyprus for a period of 3 years. The Non-Dom status of the applicant could be enhanced through the purchase of a house and the acquisition of a Cyprus passport pursuant to the Cyprus Scheme for Naturalization by Exception of the Investors.