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Thinking about moving to Cyprus and curious about how to manage your taxes in Cyprus smartly? You’re not alone. More and more individuals, from digital entrepreneurs to seasoned investors, are discovering the benefits of becoming a non-domiciled (non-dom) tax resident in Cyprus. And it’s easy to see why—favourable tax rules, a Mediterranean lifestyle, and a solid financial system make Cyprus a standout choice for anyone relocating.
Non-Dom status in Cyprus is a special tax arrangement designed to attract foreign nationals looking to establish residency without being hit with high taxes. In simple terms, it allows new residents to enjoy major tax breaks for up to 17 years. If you’re serious about reducing your global tax bill while enjoying everything Cyprus has to offer, non-dom status should be on your radar.
People moving to Cyprus who obtain non-dom status are exempt from paying tax on dividends, interest, and certain types of income. It’s a great setup if you earn income through investments or run a business internationally. For those looking to preserve wealth and pass it on efficiently to future generations, the structure is particularly appealing.
Non-Dom status is not a loophole—it’s an intentional policy created by the Cyprus government to attract foreign professionals and retirees. And with its combination of legal transparency and advantageous taxation, Cyprus stands out not just in Europe but globally.
To benefit from this programme, you’ll need to:
Not have been a Cyprus tax resident for 17 of the last 20 years
Become a Cyprus tax resident, which you can do in one of two ways:
183-day rule: Spend at least 183 days in Cyprus in a calendar year
60-day rule: Spend a minimum of 60 days in Cyprus, provided you:
Don’t spend over 183 days in any other country
Have a permanent home in Cyprus (rented or owned)
Are self-employed, employed by, or a director of a Cyprus-based company
This flexibility is ideal for mobile professionals or those splitting time across countries but still wanting favourable taxes in Cyprus. For example, tech founders who often travel for business or investors attending international meetings can still qualify for this tax status with proper planning.
One important note: Cyprus defines a permanent home broadly, so whether you’re renting an apartment in Nicosia or buying a villa in Paphos, you can meet this condition without too much red tape.
Ready to make the move? Here’s how you get started:
Physically move to Cyprus and establish a permanent home—either by purchasing property or renting long-term. Your choice will likely depend on your long-term plans. Buying is ideal if you’re settling down for the foreseeable future, while renting gives you flexibility as you get to know the island.
Consider your lifestyle preferences too. Do you prefer the vibrant life of Limassol or the calm of Larnaca? The bustling capital of Nicosia, or the scenic coastlines of Ayia Napa? Each location offers different advantages, especially when you’re weighing up access to services, networking opportunities, and travel connections.
Apply for your Tax Identification Number (TIN) at the Cyprus Tax Department. You’ll need to show evidence of your living situation and your business or job role in Cyprus.
This step is straightforward but vital. With your TIN, you can begin filing your taxes in Cyprus, benefit from local regulations, and demonstrate that your primary economic activity is tied to the country.
Having a Cyprus-based bank account supports your application by showing financial activity tied to your new country of residence. It also makes day-to-day life smoother—paying rent, utilities, or even staff if you’re setting up a business.
Most major Cypriot banks offer English-speaking services and online platforms, so you won’t be lost in translation.
Once you’re a registered tax resident, submit your non-dom application with the required forms and proof of your new life in Cyprus. The process is fairly administrative, and many people choose to work with local legal or tax professionals to ensure it’s done correctly and without delays.
Here’s where things get exciting. If you’re considering moving to Cyprus, here are some powerful reasons to apply for non-dom status:
No Tax on Dividends, Interest, and Rent: Exempt from Special Defence Contribution (SDC) for 17 years. Perfect for investors and those with passive income.
Income Tax Exemptions: Earn over €100,000? You get a 50% income tax break for your first decade in Cyprus (soon dropping to €50,000).
No Wealth or Inheritance Tax: Unlike many other countries, Cyprus won’t tax your assets or estate.
Low Corporate Tax: At 12.5%, Cyprus offers one of the most competitive corporate tax rates in the EU.
Capital Gains Exemptions: Profits from selling assets outside Cyprus aren’t taxed locally. That’s a big win if your portfolio is global.
But it’s not just about savings—it’s about flexibility and control. You can structure your income in a way that suits your life, and plan your finances years ahead with confidence. These benefits particularly appeal to freelancers, consultants, and business owners who want to reduce tax complexity across borders.
Even families are finding Cyprus a practical place to settle thanks to its education options and safe environment. International schools, English-speaking universities, and a healthcare system integrated with GESY (Cyprus’s public health programme) make daily living easier for expats.
When people think about moving to Cyprus, tax savings are often just the start. What you also get is a lifestyle that’s relaxed yet productive. The work-life balance is tangible here. Imagine having your morning Zoom calls from a terrace with sea views, then taking an afternoon swim or exploring a nearby vineyard.
Setting up a business in Cyprus is simple and affordable. The country has worked hard to streamline company registration, digitalise government systems, and maintain investor-friendly legislation. It’s no surprise that Cyprus is quickly becoming a hub for fintech, shipping, and remote-based businesses.
Cyprus is a crossroads between Europe, the Middle East, and Africa, making it an excellent base for international travel. With two major international airports (Larnaca and Paphos) and a range of daily flights to major cities, travelling for business or leisure is convenient and cost-effective.
Most professional services in Cyprus—from lawyers and accountants to banks and insurers—operate in English. That means less confusion, smoother processes, and better customer service. The country’s legal system is based on British common law, which is familiar to many expats and generally considered transparent and reliable.
300 days of sunshine a year? Yes, really. Outdoor living is part of daily life in Cyprus. Whether it’s sailing, golfing, or just dining al fresco, the Mediterranean climate plays a big part in why so many choose to stay here for good.
Let’s face it—tax planning is only one piece of the puzzle. What makes Cyprus even more appealing is the lifestyle that comes with it. Great weather, welcoming communities, an English-speaking legal system, and strong healthcare services all make the transition smoother.
For anyone focused on long-term financial efficiency, taxes in Cyprus are hard to beat. Combine that with modern amenities and excellent global access (thanks to direct flights and time zone advantages), and it’s clear why so many are making the leap.
The island’s non-dom regime is one of the most generous in Europe. And whether you’re building a business, retiring early, or managing international investments, the combination of tax perks and lifestyle makes moving to Cyprus a very smart move.
1. Can I still work for an overseas company while living in Cyprus as a Non-Dom?
Yes. As long as you meet the tax residency criteria and your income flows through Cyprus, you’re eligible for non-dom benefits—even if your employer is abroad.
2. How long does it take to become a tax resident in Cyprus?
Once you’ve met the 60-day or 183-day requirement and registered, it’s official for that tax year. The sooner you complete the steps, the sooner you benefit.
3. Will Cyprus tax my foreign property or bank accounts?
No. As a non-dom resident, foreign assets like overseas property, bank interest, and dividends are exempt from Cyprus tax for up to 17 years.
4. Can I bring my family and still benefit from Non-Dom status?
Absolutely. Spouses and dependents can live with you in Cyprus, and many of the lifestyle and tax benefits apply to families too.
5. Is there a minimum investment required to qualify for Non-Dom status?
No. There’s no mandatory investment threshold, though you do need a permanent residence and an economic link to Cyprus (job, business, or directorship).
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