The Non-Dom regime is the personal half of what makes Cyprus attractive: while the company pays corporate income tax on its profits, the shareholder can receive dividends without Special Defence Contribution (SDC) — for up to 17 years.
The two conditions
Non-Dom status requires exactly two things: you are a Cyprus tax resident (under the 183-day or the 60-day rule — see the residency guide), and you are not domiciled on Cyprus. For people who move here, the second condition is usually automatic: you are treated as non-domiciled until you have been tax resident for 17 of the last 20 years.
What the exemption covers
- Dividends — no SDC, whether from your own Cyprus Limited or from foreign holdings.
- Interest — no SDC on interest income.
- Rental income — exempt from SDC (normal income tax still applies).
Two honest caveats: the GHS health contribution does apply to dividend and interest income, and salary or business income is taxed under the normal progressive rates. Non-Dom removes one specific levy — it is not a zero-tax badge.
Why it pairs with a Cyprus Limited
The standard structure is simple: the Limited earns and pays corporate income tax; the owner draws a sensible salary and takes the remainder as dividends free of SDC. What counts as "sensible" depends on your situation — this is exactly where qualified tax specialists earn their fee.
How the application works
Non-Dom status is claimed with the Cyprus tax authorities on the basis of your residency and domicile position, supported by documentation. In the app, the application is prepared alongside your company setup and the status is tracked year by year — including the day counts your residency depends on.
The 2026 reform
Cyprus is modernising parts of its tax framework. The mechanics described here — SDC exemption for non-doms, the 17-year horizon — remain the core of the regime; details are reflected in the app as they take effect, and specialists are involved where your individual position needs judgement.
taxzone.cy is a software platform. It prepares filings and tracks positions; individual tax advice comes from qualified tax specialists, and reserved legal acts are carried out by an admitted Cyprus law firm.
FAQ
How long does Non-Dom status last?
Up to 17 years: you count as non-domiciled until you have been a Cyprus tax resident for 17 of the last 20 years. After that you are deemed domiciled and SDC applies.
Do dividends from my own Cyprus Limited qualify?
Yes — dividend distributions from a Cyprus company to a non-dom shareholder are the classic use case. The company pays corporate income tax on profits; the distribution itself is free of SDC.
Is everything tax-free then?
No. The health system contribution (GHS) applies to dividend and interest income, employment and business income is taxed normally, and corporate profits are taxed at company level. Non-Dom removes SDC — it is not a blanket exemption.
Set up Non-Dom alongside your company
One record: company, residency days and Non-Dom status, tracked together.