Non-Dom Status in Cyprus: The Ultimate Guide for 2025

Cyprus has established itself as a tax haven within the EU. The Non-Dom status makes the sunny island particularly attractive for international entrepreneurs and high-net-worth individuals.

For 17 years, you can benefit from exceptional tax advantages. No taxes on dividends, interest, or capital gains – with full EU membership.

What Makes Non-Dom Status So Special?

Non-Dom status distinguishes between tax residency and domiciliation. This separation creates unique advantages for international taxpayers. You live in Cyprus but pay significantly less tax than regular residents.

The Cypriot tax system rewards international entrepreneurs with one of Europe's most attractive tax regimes. The combination of low tax rates and EU membership makes Cyprus the ideal base for international business. At the same time, you enjoy a Mediterranean climate, first-class infrastructure, and high quality of life.

Your Tax Benefits at a Glance

As a Non-Dom, you benefit from complete tax exemptions on capital gains. Dividends remain tax-free – regardless of their source. Interest income is not subject to taxation. The dreaded Special Defence Contribution (SDC) of 17% is completely eliminated.

Additionally, there is neither wealth tax nor inheritance tax. Even profits from securities trading remain tax-free.

Who Qualifies for Non-Dom Status?

Qualification requires two main criteria. First, you must become tax resident in Cyprus. Second, you must not be considered domiciled in Cyprus.

The Path to Tax Residency

Two paths lead to Cypriot tax residency:

The classic 183-day rule requires a stay of more than half a year in Cyprus. However, this is impractical for many international entrepreneurs. This is where the innovative 60-day rule comes into play. With just two months of presence, you can already be considered tax resident – if you meet the additional conditions.

The Smart 60-Day Rule

The 60-day rule revolutionizes international tax planning. You only need 60 days of presence in Cyprus. Additionally, you must not spend more than 183 days in any other country and must not be tax resident anywhere else.

An economic connection to Cyprus is required. This can be company formation in Cyprus, employment, a director position, or permanent residence. Most of our clients combine a Cyprus Limited with their own property in Paphos.

The Application Process Step by Step

Applying for Non-Dom status requires careful preparation. Our experts guide you through every step of the process.

1. Document Preparation

First, gather all required documents. These include passport, birth certificate, proof of current residence, and evidence of your economic activities. For company formation, you'll additionally need corporate documents. Employees require an employment contract.

Proof of accommodation in Cyprus is essential. A rental or purchase agreement documents your connection to the island.

2. Apply for Tax Number

Nothing works without a Cypriot tax number (TIC). The application is made to the local tax authorities. With our support, you'll receive your TIC within a few days.

3. Submit Application

The actual application is made using special forms to the Cypriot tax authorities. Errors can lead to delays or rejections. Our tax advisors know every pitfall and ensure smooth processing. For more complex cases, we recommend additionally consulting specialized Cypriot lawyers.

4. Annual Compliance

After approval, your ongoing obligations begin. An annual tax return confirms your status. Documentation of your days of presence is important. Changes in your personal circumstances must be reported.

Tax Planning Opportunities

Non-Dom status unfolds its full potential in combination with intelligent tax planning.

Optimizing Income Tax

Cypriot income tax follows a progressive system. The first €19,500 remains tax-free. After that, rates increase gradually up to a maximum of 35% for income over €60,000. Through clever structuring with dividends instead of salary, you can significantly optimize your tax burden.

The Cyprus Limited as a Tax-Saving Model

A Cyprus Limited offers ideal synergies with Non-Dom status. With just 12.5% corporate tax, Cyprus is among the EU's most attractive business locations. Dividends to Non-Dom shareholders flow completely tax-free. No withholding tax reduces your distributions.

The structure enables international business with minimal tax burden. EU-wide freedom of establishment and the extensive network of double taxation treaties create optimal conditions for your international business.

Strategic Use of Real Estate Investments

Properties in Cyprus not only strengthen your connection to the country. They also offer attractive returns and appreciation potential. The Paphos region in particular is developing dynamically.

Transfer tax ranges between 3% and 8%, depending on the purchase price. Annual property tax is based on historical values from 1980 and is minimal. Rental income from Cypriot properties is taxed at 20% after deducting a 20% flat rate for costs.

Practical Life as a Non-Dom in Cyprus

Moving to Cyprus means more than just tax optimization. You gain quality of life in one of Europe's most beautiful countries.

Easy Integration

English dominates business life. In tourist areas, many Cypriots also speak German. The German community is growing steadily, especially in Paphos and Limassol.

A Cypriot bank account makes daily life much easier. Account opening takes just a few days with our support. The healthcare system meets European standards. Private health insurance offers additional comfort.

Cost of Living Overview

Cyprus offers excellent value for money. A modern 2-bedroom apartment costs between €600 and €1,200 monthly. Location determines the price. Beachfront and sea views have their price but offer incomparable quality of life.

Food costs about €300 to €500 per person per month. Mediterranean cuisine with fresh, local products is healthy and affordable. Restaurant visits remain affordable at €15 to €30 per main course. Gasoline prices are around €1.50 per liter.

Avoiding Common Mistakes

Many applicants underestimate the complexity of Non-Dom status. These mistakes can be costly.

Documentation is Everything

Incomplete records jeopardize your status. Document each day of presence precisely. Keep flight tickets, hotel bills, and other evidence. The tax authorities check carefully.

Creating Substance

A mailbox isn't enough. Cypriot authorities expect real economic substance. Active business operations, regular stays, and local connections are essential. Our business consultants help build real presence.

Professional Support

Tax laws change. What applies today may be outdated tomorrow. Continuous consultation secures your status long-term. Our experts stay on top of things for you.

Your Partner for Non-Dom Status

Living in Cyprus accompanies you throughout your entire journey. From initial consultation to ongoing support.

Our Service Portfolio

We analyze your personal situation and develop the optimal strategy. We handle company formation completely. From name checking to account opening. Our real estate department finds your dream home. Tax optimization is handled by experienced advisors. Interpreter services facilitate official procedures. After your settlement, we remain your contact.

Why Living in Cyprus?

Over 10 years of experience speak for themselves. Hundreds of satisfied clients have taken the step to Cyprus with us. Our German-speaking team in Paphos knows both cultures. We offer complete solutions from a single source. Transparent prices without hidden costs create trust. Your personal contact remains permanently available.

Conclusion: Your Future Starts Now

Non-Dom status opens doors to a new quality of life. Tax optimization meets Mediterranean lifestyle. EU membership guarantees legal security. 17 years of tax advantages await you.

Current legislation makes 2025 the ideal time for your move. Take advantage of the opportunities before the framework conditions change.

Contact us for a no-obligation initial consultation. Together we'll realize your dream of living in Cyprus – with all the tax advantages of Non-Dom status.

Step 1: Document Preparation

You need the following documents:

• Passport and ID card
• Proof of your current residence
• Birth certificate
• Employment contract or company documents
• Rental or purchase agreement for your accommodation in Cyprus
• Proof of your activities outside Cyprus

Step 2: Applying for Tax Number

Before you can apply for Non-Dom status, you need a Cypriot tax number (TIC - Tax Identification Code).

Step 3: Submitting the Application

The application is submitted to the Cypriot tax authorities. It's advisable to engage a specialized tax advisor for this.

Step 4: Confirmation and Annual Declarations

After approval, you must file your annual tax return in Cyprus and confirm your status.

Tax Benefits in Detail

Income Tax

Income tax in Cyprus is progressively structured:

• 0% on the first €19,500
• 20% on €19,501 - €28,000
• 25% on €28,001 - €36,300
• 30% on €36,301 - €60,000
• 35% on over €60,000

Capital Gains

As a Non-Dom, you pay no taxes on:

• Dividends (regardless of source)
• Interest income (regardless of source)
• Foreign rental income (under certain conditions)

Social Insurance

Social insurance contributions in Cyprus are:

• Employees: 8.3% of gross salary
• Employers: 8.3% of gross salary
• Self-employed: 15.6% of income

Company Formation and Non-Dom Status

The combination of Non-Dom status and a Cypriot Limited Company offers significant advantages:

Benefits of a Cyprus Limited

• Corporate tax of just 12.5% - one of the lowest in the EU
• No withholding tax on dividends to Non-Dom shareholders
• EU membership with access to the single market
• Extensive double taxation treaty network

Optimal Structuring

A typical structure for Non-Dom individuals looks like this:

1. Formation of a Cyprus Limited Company
2. Employment as managing director with market-standard salary
3. Distribution of profits as tax-free dividends
4. Use of international holding advantages

Our tip: Let our experts advise you on structuring. We support you with company formation and ensure optimal tax planning.

Real Estate and Non-Dom Status

Acquiring property in Cyprus can strengthen your Non-Dom position:

Benefits of Property Acquisition

• Proof of connection to Cyprus for the 60-day rule
• No wealth tax on properties
• Attractive returns from rental
• Appreciation potential in popular regions like Paphos

Tax Aspects

• Transfer tax: 3-8% depending on purchase price
• Annual property tax: 0.1-1.9% of 1980 value
• Rental income: 20% tax after deducting 20% flat rate

Interested in real estate in Cyprus? Our real estate team will be happy to advise you on the best investment opportunities in Paphos and other regions.

Avoiding Common Mistakes

Mistake 1: Insufficient Documentation

Many applicants underestimate the importance of complete documentation. Keep accurate records of:

• Days spent in Cyprus and other countries
• Business activities
• Sources of income

Mistake 2: Neglecting Substance

Non-Dom status requires real substance in Cyprus. A mailbox alone is not sufficient.

Mistake 3: Lack of Advice

Tax laws are complex and changing. Professional advice is essential.

Practical Tips for Your Move

Taking Up Residence in Cyprus

1. Housing search: Start looking for suitable accommodation early
2. Bank account: Open a Cypriot bank account
3. Insurance: Take out health insurance
4. Integration: Get to know the local culture and language

Cost of Living

Living costs in Cyprus are moderate compared to the EU:

• Rent (2-bedroom apartment): €600-1,200/month
• Food: €300-500/month per person
• Restaurant: €15-30 per meal
• Gasoline: approx. €1.50/liter

The Path to Non-Dom Status with Living in Cyprus

We accompany you throughout your journey to Non-Dom status:

Our Services

1. Initial consultation and analysis of your personal situation
2. Support with company formation including all formalities
3. Real estate brokerage for your new residence
4. Tax optimization by experienced advisors
5. Interpreter services for all official procedures
6. Ongoing support after your settlement

Why Living in Cyprus?

• Over 10 years of experience serving German clients
• German-speaking team on site in Paphos
• Comprehensive support from a single source
• Transparent prices without hidden costs
• Personal contact for all your concerns

Conclusion

Non-Dom status in Cyprus offers exceptional tax advantages for international entrepreneurs and high-net-worth individuals. With the right planning and professional support, you can benefit from this attractive tax regime while enjoying the high quality of life on the sunny island.

The combination of EU membership, low taxes, pleasant climate, and strategic location makes Cyprus an ideal location for your business and life.

Next Steps

Are you ready to take advantage of Non-Dom status? Contact us for a no-obligation initial consultation. Our experienced team is available for all questions and will guide you safely through the entire process.

Contact us now and start your future in Cyprus!