Cyprus non-dom status: 0% SDC on dividends for up to 17 years
With non-dom status a Cyprus tax resident pays no Special Defence Contribution (SDC) on dividends and interest. We register you and file the declaration.
What Cyprus non-dom status is
What non-domiciled means
Non-dom is short for non-domiciled. Cyprus charges the Special Defence Contribution (SDC) on the dividends and interest of people who are both tax resident and domiciled in Cyprus. A tax resident whose domicile is in another country stands outside that charge. The rule has applied since 16 July 2015.
Where domicile comes from
Domicile comes from the Wills and Succession Law, Cap. 195. A person takes a domicile of origin at birth, usually the father's, and keeps it until settling for good in another country. For tax, a person also counts as domiciled after being tax resident in Cyprus for 17 of the last 20 years.
A tax status, apart from the right to live
Non-dom is a tax status. The right to live in Cyprus comes separately, from EU citizenship or a residence permit, and the tax status follows from the days you spend on the island. The days are counted for each calendar year: more than 183 under one rule, 60 or more under the other.
What non-dom status changes: Cyprus tax on dividends and interest
GeSY is the national health system. Its contribution is charged on income up to €180,000 a year.
| Charge | Non-dom resident | Domiciled resident |
|---|---|---|
| SDC on dividends from profits of 2026 and later | 0% | 5% |
| SDC on dividends from earlier profits | 0% | 17% |
| SDC on interest | 0% | 17% |
| Income tax on dividends and interest | 0% | 0% |
| GeSY on dividends and interest | 2.65% | 2.65% |
| Income tax on a salary | 0% to 35% | 0% to 35% |
| Tax on gains from the sale of shares | 0% | 0% |
What clients write about Legarithm
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…they handled my Cyprus company setup while I was still in London. Smooth remote process and great communication.
We set up a company in Cyprus. Nobody pushed extra services, everything was to the point. They explain things clearly, give a real timeline and help with the tax details.
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What non-dom registration in Cyprus costs
Prices are before VAT.
Tax number, non-dom declaration and residency certificate
Fixed in your quoteYou get the figure in writing by the end of the next working day.
Get a quote- Certificate and tax return in later years
- in your quote
- Cyprus company formation
- from €1,699
- Accounting for the company, a month
- from €290
Worked example: €200,000 of dividends a year
A founder who is tax resident in Cyprus receives €200,000 of dividends in 2026, paid from the profit of the same year, and has no other income.
Dividends
- Non-dom resident
- €200,000
- Domiciled resident
- €200,000
SDC
- Non-dom resident
- €0
- Domiciled resident
- €10,000 (5%)
GeSY, 2.65% of the first €180,000
- Non-dom resident
- €4,770
- Domiciled resident
- €4,770
Kept
- Non-dom resident
- €195,230
- Domiciled resident
- €185,230
€10,000What the status leaves each year
On these figures the status leaves the founder €10,000 more each year, and €170,000 more over 17 years. Interest follows the same pattern at a higher rate: on €20,000 of bank interest a domiciled resident pays €3,400 of SDC, and a non-dom pays none.
15%The company pays its tax first
The company that pays the dividend has paid 15% corporate tax on its profit first. Tax in Cyprus follows the money from the company's profit to the owner.
Who qualifies for non-dom status in Cyprus
You become tax resident under the 183-day rule or the 60-day rule, for each calendar year in turn. Each rule is set out in Cyprus tax residency: the 183-day and 60-day rules.
Your domicile of origin, taken at birth, is outside Cyprus. Most founders who move to Cyprus from another country meet this.
You have been tax resident in Cyprus for fewer than 17 of the last 20 years.
A person with a Cyprus domicile of origin qualifies after settling in another country and staying outside Cyprus tax residence for 20 years in a row.
A husband or a wife qualifies on their own days and their own ties to Cyprus. Children follow their parents.
Tax residency comes first: which test you meet
Either rule makes you tax resident for the year. The non-dom declaration rests on it.
| Condition | 183-day rule | 60-day rule |
|---|---|---|
| Days in Cyprus in the calendar year | More than 183 | 60 or more |
| Days in any other single country | No condition | 183 at most |
| Home in Cyprus | No condition | Owned or rented, kept through the year |
| Work tie to Cyprus | No condition | A business, a job or a directorship in a Cyprus company, held to the end of the year |
| Tax residence in another country as well | No condition | Allowed since 1 January 2026. A tax treaty decides between the two. |
| How a day counts | The day you arrive counts as a day in Cyprus, the day you leave as a day abroad | The same |
How to get non-dom status in Cyprus
- first1
You set up your base in Cyprus
You rent or buy a home. For the 60-day rule we register your company and appoint you as its director: company formation in Cyprus.
- 1 to 2 weeks2
We obtain your tax number
We register you in the Tax Registry through Tax For All, the Tax Department's portal, and receive your tax identification code (TIC).
- 2 to 4 weeks3
We file the non-dom declaration
We file form T.D.38 with the questionnaire T.D.38QA on your domicile of origin and the evidence behind it. The Tax Department answers with a letter that confirms the status.
- after 60 or 183 days4
We obtain the residency certificate
Once your days in Cyprus reach 60 or 183, we apply on form T.D.126 with your travel record, your lease or title deed and the proof of your work tie.
- every year5
We keep the status in order
Each year we count your days from your travel records, file your personal tax return and apply for the new certificate.
Documents for the non-dom declaration and the certificate
Documents
For the tax number and the declaration
- Passport
- Evidence of your domicile abroad
- Lease or title deed of your home in Cyprus
- Utility bill in your name
For the certificate, each year
- Boarding passes, tickets and passport stamps for the day count
- Employment contract or proof of your directorship
- Lease or title deed that covers the whole year
You send them in your account. We check each document the day it arrives and tell you what is missing.
See the platformHow long non-dom status lasts and how it is extended
A founder resident in every year from 2026 holds the status until the end of 2042, the 17th year. A year in which you are resident elsewhere stays out of the count, as the guide to the 17 years of non-dom status shows.
From 2026 a person whose domicile of origin is abroad extends the status twice, for 5 years each time, at €250,000 for each period. That makes 27 years.
Tax residency is tested for each calendar year, so the certificate is issued year by year. We apply for it once the days of the year are reached.
From 2026 every resident aged 25 to 70 files a yearly tax return, with or without tax to pay. We prepare yours and keep the books of your company: accounting in Cyprus.
Questions about Cyprus non-dom status
How long does non-dom registration take in Cyprus?
3 to 6 weeks from your documents to the Tax Department's letter: 1 to 2 weeks for the tax number, then 2 to 4 for the declaration. We apply for the residency certificate once your days in Cyprus reach 60 or 183.
Is Cyprus non-dom the same as tax residency?
No. Tax residency follows your days in Cyprus, and domicile is your long-term legal home. The exemption is for a tax resident whose domicile is abroad.
Do non-doms pay GeSY on dividends?
Yes: 2.65% on income up to €180,000 a year, which is €4,770 at most.
Do I need a Cyprus company for non-dom status?
For the 183-day rule, no. For the 60-day rule a directorship in your own Cyprus company gives the tie the rule asks for, and the company pays you dividends.
Does the exemption cover dividends from abroad?
Yes. Dividends and interest are free of SDC whether they arise in Cyprus or abroad.
Is a founder's salary covered by non-dom status?
No. A salary bears income tax at 0% to 35%. In a first job in Cyprus above €55,000 a year, half of it is exempt for 17 years. We apply that exemption in payroll in Cyprus.
Get a quote for your Cyprus company
Book a 30-minute call about your company
Your consultant Vladyslav Babaiev Opens in a new tab Business Setup Specialist
- We email you the Google Meet link.
- 30 minutes, free, no obligation to order.
- After the call we email you the checklist of documents for your country.
We reply by the end of the next working day with the cost and the dates for your case. The first call is free and confidential.
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Updated 21 October 2026. Reviewed by Vladyslav Drapii, Founder.
