Tax Residency and Non-Domiciled (Non-Dom) Status in Cyprus
Cyprus has become one of Europe’s most attractive jurisdictions for international investors and professionals, offering a favourable tax regime alongside a high quality of life. Two important concepts for individuals relocating to Cyprus are Tax Residency and the Non-Domiciled (Non-Dom) regime.
Becoming a Tax Resident in Cyprus
An individual is considered a tax resident of Cyprus by meeting either the 183-day rule or the 60-day rule within a calendar tax year (January–December).
Under the 183-day rule, one must spend more than 183 days in Cyprus during the year.
The 60-day rule applies if the individual:
- Spends at least 60 days in Cyprus;
- Does not reside in another country for more than 183 days;
- Maintains a permanent residence in Cyprus (owned or rented);
- Conducts business and/or holds an office in a Cyprus tax resident company.
To register as a tax resident, individuals must apply online through the Cyprus Tax Department portal. Supporting documents include a passport or EU ID, a rental agreement or title deed, proof of business activity or directorship, a completed Form T.D.2001, a recent utility bill, and travel records verifying days spent inside and outside Cyprus.
Understanding Non-Domiciled Status
The Non-Dom regime offers significant advantages, especially exemption from the Special Defence Contribution (SDC) on dividends, interest, and rental income. An individual qualifies as non-domiciled if:
- They were not born in Cyprus; and
- They have not been a Cyprus tax resident for at least 17 of the last 20 years prior to the relevant tax year.
To obtain non-dom status, applicants must submit documentation such as the 38AQ form, either form 38Qa or 38Qb, a translated birth certificate, proof of residence (yellow slip), and a recent utility bill.
Applying as an Individual
It is important to note that registering a company in Cyprus is not the only route to apply for Non-Dom tax residency. Individuals may also apply in their personal capacity. To do so, they must:
- Be physically present in Cyprus for at least 183 days in the tax year (supported by travel records);
- Rent or own a property in Cyprus, evidenced by a rental agreement and utility bills.
In practice, this also requires obtaining an Alien Registration Certificate (ARC) from the Migration Department. The ARC confirms legal residence status in Cyprus, as a tourist visa does not permit the minimum 183-day stay required for the Non-Dom application.
Key Takeaway & Next Steps
Cyprus’s Non-Dom regime offers a highly attractive opportunity for investors, professionals, and retirees seeking a competitive European tax base. Whether applying through corporate involvement or as an individual, careful planning and compliance with both tax and immigration requirements are essential.
At Lyssiotis Law Office / Vera Lyssiotis LLC, we assist clients with every stage of the process—from residency permits and ARC registration, to tax residency and non-dom applications—ensuring a smooth and compliant transition into Cyprus.