Non-dom status is one of the main reasons founders and investors move to Cyprus. It can make dividends from your own company largely free of Cyprus tax. Here is how it works, who qualifies and what to watch out for. This is a general overview, not personal tax advice.
Tax residence comes first
Non-dom benefits only apply to people who are Cyprus tax resident. You usually become tax resident in one of two ways:
- The 183-day rule: you spend more than 183 days in Cyprus in the calendar year.
- The 60-day rule: you spend at least 60 days in Cyprus, do not spend more than 183 days in any other single country, are not tax resident anywhere else, carry on business, work or hold an office (such as a directorship) in Cyprus, and keep a permanent home in Cyprus that you own or rent.
The 60-day rule is popular with founders who travel a lot. A directorship in your own Cyprus company can help you meet the business condition.
Who is a non-dom
Generally, you are non-domiciled if your domicile of origin is not Cyprus, usually meaning your father was not domiciled in Cyprus when you were born, and you have not been Cyprus tax resident for 17 of the last 20 years. Most people who move to Cyprus from abroad qualify.
What it saves you
- Dividends: no special defence contribution, including on dividends from your own Cyprus company.
- Interest: no special defence contribution.
- Rental income: no special defence contribution.
For comparison, Cyprus-domiciled residents now pay a 5% contribution on dividends after the 2026 tax reform. Your company still pays 15% corporate tax on its profits before any dividend is paid.
What you still pay
- GeSY contributions: Cyprus's health system contribution generally still applies to dividends, interest and rent, up to an annual income cap.
- Income tax on salary: any salary you take is taxed under the normal personal income tax bands. From 2026 the first €22,000 a year is tax free.
- Tax returns: you need to file a personal tax return every year.
How long it lasts
Non-dom status normally lasts while you have not been Cyprus tax resident for 17 of the previous 20 years, so in practice up to 17 years. The 2026 reform added an option to extend it beyond that by paying a lump sum.
Other benefits for people who move to Cyprus
- 50% exemption on high salaries: people who take up employment in Cyprus earning over €55,000 a year, and who were not Cyprus tax resident before, can claim a 50% exemption on that income for a limited number of years, subject to conditions.
- Residence and work permits: non-EU founders can relocate through a company of foreign interests. See our permits guide.
Things to check before you rely on it
- Your home country's rules: some countries keep taxing people who leave, or tax their citizens wherever they live. Get advice in your home country too.
- Real substance: keep evidence of your days in Cyprus, your home and your business activity.
- Register properly: you need a Cyprus tax number and, where relevant, a non-dom confirmation from the Tax Department.
Tax rules change and every situation is different. Speak to a tax adviser about your own position before making decisions.
How CyCorporate helps
We set up your Cyprus company, register your tax number, help with residence permits and work with tax advisers on your non-dom position. See our company formation service.
Frequently asked questions
Who can get non-dom status in Cyprus?
Generally, people whose domicile of origin is not Cyprus and who have not been Cyprus tax resident for 17 of the last 20 years. You must also be Cyprus tax resident to benefit from it.
What does non-dom status save?
Non-doms are exempt from the special defence contribution on dividends, interest and most rental income, including income from abroad. Since 2026 the contribution on dividends for Cyprus-domiciled residents is 5%, so non-doms avoid that cost.
How long does non-dom status last?
Up to 17 years of Cyprus tax residence. The 2026 tax reform introduced an option to extend it for further periods in return for a lump-sum payment.
Do non-doms still pay anything on dividends?
Yes. GeSY (General Healthcare System) contributions generally still apply to dividends, interest and rent, up to an annual income cap. Personal income tax on salary is separate and applies as normal.