Question 1

What is the Cyprus Non-Domiciled (Non-Dom) tax status?

Accepted Answer

Introduced in July 2015, the Cyprus Non-Domicile regime exempts individuals who are Cyprus tax residents but not domiciled in Cyprus from Special Contribution for Defence (SDC) on worldwide dividend income and passive interest income (0% tax) for up to 17 years.

Question 2

What are the statutory SDC tax rates for domiciled tax residents?

Accepted Answer

For Cyprus-domiciled tax residents, SDC is levied at: 17.0% on dividends (domestic or foreign); 17.0% on passive interest (reduced from 30% by Law 151(I)/2023); and 3.0% on 75% of gross rental income (effective 2.25% on gross rent).

Question 3

Does GeSY healthcare levy apply to dividend and interest income?

Accepted Answer

Yes. All Cyprus tax residents (both domiciled and non-domiciled) are subject to a 2.65% General Healthcare System (GeSY) contribution on investment income (dividends, interest, and rent), capped at an annual worldwide income threshold of €180,000.

Question 4

How is SDC calculated on rental property income in Cyprus?

Accepted Answer

Under the SDC Law, rental income is granted a statutory 25% deemed expense deduction. The remaining 75% is subject to 3.0% SDC, resulting in an effective tax rate of 2.25% on gross rental revenue.

Question 5

How does an individual become a Cyprus tax resident under the 60-day rule?

Accepted Answer

An individual qualifies under the 60-day rule if they: spend at least 60 days in Cyprus; do not spend more than 183 days in any other country; are not tax-resident elsewhere; maintain a permanent home in Cyprus; and operate a business, are employed, or hold office in a Cyprus company.

Jurisdiction	Tax on Foreign Dividends	Tax on Domestic Dividends	Duration of Regime	Lump Sum Annual Charge
Cyprus Non-Dom 🇨🇾 0% SDC	0.0% (Only 2.65% GeSY)	0.0% (Only 2.65% GeSY)	17 Years (of 20)	€0 (No Minimum Fee)
Greece Non-Dom 🇬🇷	0% (Lump-sum covered)	5.0% flat Greek tax	15 Years	€100,000 / year flat fee
Italy Neo-Residente 🇮🇹	0% (Lump-sum covered)	26.0% Italian capital tax	15 Years	€200,000 / year flat fee
Malta Non-Dom 🇲🇹	0% (if not remitted)	35% standard PIT	Indefinite (Remittance basis)	€5,000 min annual tax
United Kingdom 🇬🇧	FIG 4-year temporary exemption	8.75% / 33.75% / 39.35%	4 Years (Phase out)	None (replaced non-dom)

Cyprus Special Contribution for Defence (SDC) Calculator

Tax Domicile & Income Streams

Tax Department Statutory Assessment Amounts in EUR (€)

European Non-Dom & Wealth Relocation Regimes Comparison

Engr. Muhammad Shahzad

📊 Cyprus Tax Department & Social Insurance Services (SIS) Matrix