Cyprus Non-Dom Status Explained — The 17-Year Rule for 2025

Cyprus non-dom status is one of the most generous personal-tax regimes in the EU. If you qualify, you pay zero Special Defence Contribution (SDC) on worldwide dividends, interest, and rental income — for up to 17 years. Here's exactly how the regime works in 2025 and what you must declare.

What is "non-dom" in Cyprus?

Cyprus tax law splits residence (where you live) from domicile (your long-term, permanent home). You can be a Cyprus tax resident while remaining non-domiciled for tax purposes — provided your domicile of origin is outside Cyprus and you haven't been a tax resident here for 17 of the previous 20 years.

The 17-year rule

An individual is treated as domiciled in Cyprus for SDC purposes if they have been a Cyprus tax resident for at least 17 out of the last 20 tax years. Until you hit that threshold, you enjoy full non-dom benefits.

Practically, most new arrivals — entrepreneurs, retirees, remote workers — can claim non-dom status immediately upon becoming Cyprus tax resident.

Becoming Cyprus tax resident — 183-day and 60-day tests

The 183-day rule

Spend more than 183 days in Cyprus in a tax year and you're automatically a Cyprus tax resident.

The 60-day rule

You qualify under the 60-day rule if ALL of the following are met:

• You stay in Cyprus for at least 60 days in the tax year
• You do not stay in any other single country for more than 183 days
• You are not tax resident in any other country
• You carry out business, are employed, or hold an office of a Cyprus tax resident company
• You maintain a permanent residence in Cyprus (owned or rented)

What non-dom actually saves you

SDC is the tax that non-doms avoid. Standard SDC rates for domiciled residents:

• 17% SDC on dividends (worldwide)
• 17% SDC on most interest income
• 3% SDC on 75% of gross rental income

As a non-dom you pay 0% on all three. You still pay 2.65% GHSon these income streams (capped at €180,000 of total annual income), and you pay normal personal income tax on employment, self-employment, and pension income.

What you must still declare on your TD1

Non-dom doesn't mean "don't declare". You report all worldwide income on the TD1 return and tick the non-dom box so the SDC columns calculate at 0%. Rental income is still subject to income tax under the normal bands. Dividends and interest are SDC-exempt but appear on the return for transparency.

Common mistakes

• Forgetting GHS — non-dom exempts SDC, not GHS
• Not maintaining proof of the 60-day conditions (rental contract, utility bills, flight records)
• Letting tax residency lapse in another country before establishing it in Cyprus
• Missing the SDC self-assessment box even when 0% applies — Tax Department may query the return

File your non-dom TD1 return correctly

We file Cyprus non-dom returns from €30. A licensed advisor confirms your non-dom status, calculates any GHS correctly, and submits your TD1 through Taxisnet — so you keep every euro the regime entitles you to.