Cyprus Non-Domicile Tax Residency Regime

 

Pursuant to the Non-Domicile tax residency regime, an individual being a tax-resident of Cyprus but not domiciled, is tax exempt on his worldwide dividends and interest income. Other tax benefits include the exemption from any tax on the sale of securities and the exemption from Cyprus income tax – for a period of 10 years – of the 50% of remuneration from employment exercised in Cyprus by any individual who was not a tax resident of Cyprus before the commencement of the employment provided that the annual remuneration exceeds €100.000.

 

On July 2017, an amendment to the Cyprus Income Tax Law was adopted, marking a significant change to the non-domicile tax residency regime.

 

As per the old regime, an individual was considered a tax resident of Cyprus if he remained in the Republic for a period exceeding an aggregate of 183 days in the year of assessment.

 

The new Law has maintained the 183-days rule and has added a fresh option, a reduced threshold of 60 days. Three criteria must be met by the individual:

(a) he should not reside in any other single state for a period exceeding 183 days in aggregate and should not be a tax resident in any other state,

(b)- he must carry out any business in Cyprus and/or be employed in Cyprus and/or hold an office to a person resident in Cyprus at any time during the year of assessment, and

(c)- he must maintain (either by owning or by renting) a permanent residence in Cyprus.

 

We, at Ierotheou, Kamperis & Co. LLC, provide the necessary legal and accounting services to offer you the unrivaled benefits of the Non-Dom Residence Regime, and assist you in transferring your tax residency to Cyprus.