Non Domicile status Cyprus
Who can get Non-Dom status?
All tax residents of Cyprus are divided into two categories: “domicile” (domocile) and non-domicile (non-domicile or non-domicile).
Domiciles are “indigenous” residents who have lived in Cyprus for more than 17 of the last 20 years. This status is given to those who:
-were born in Cyprus and received the status of permanent residence by birthright;
-chose Cyprus as their place of residence and bought residential property in the country.
Tax benefits that the status of “Non-Dom” gives
The main advantage of the status is that it allows you not to pay the defense tax, which consists of:
-Tax on dividends at the rate of 17%;
-Tax on interest on bank deposits at a rate of 30%;
-Tax on rental income at a rate of 3%.
Non-Domilians are exempt from paying the listed taxes, regardless of the country in which the income was received. In addition, they do not pay taxes on:
-inherited property and property received from family members under a gift agreement;
-sale of shares and other securities;
-sale of real estate outside of Cyprus.
How to determine who is a tax resident in Cyprus?
The status without permanent residence can only be obtained by residents of Cyprus. And residents of Cyprus are those who fulfill one of the following rules:
- “Rule of 183 days”
-“The 60 Day Rule”
