Non-Domiciled Rule. What does it mean for me? 

The non-domiciled rule is a clever tax law which was introduced by the Cyprus Income Tax office few years ago and it is a tax status for individuals who have not been living in Cyprus 17 out of the last 20 years. 

Benefits of this tax status? 

Individuals who are living in Cyprus and are tax residents but not domiciled are not subject to special defense tax which applies to dividend income, interest income and rental income.  

Therefore, an individual with worldwide dividend income is entitled to tax free dividends. 

Does it apply to Cypriots? 

Yes. It applies to anyone who has returned to Cyprus, has not been living 17 out of 20 years in the republic and who has business ties with the island. 

What are the conditions of the non dom? 

Although each application is examined separately and varies the main conditions to obtai the non domicile statues are: 

• The individual has not been living in Cyprus 17 out of the last 20 years 

• The individual stays in Cyprus at least 60 days 

• The individual is not tax resident elsewhere or lives elsewhere more than 183 days 

• The individual has business ties with Cyprus 

How are business ties determined? 

• The individual must have an active Cyprus company (being the shareholder and director) 

• Receive salary from your Cyprus company and dividend 

• Could rent office – optional 

Who can obtain this for me? 

Your accountant or tax adviser must prepare the application forms together with all supporting documentation and apply on your behalf. It usually takes 2 months to obtain the non-domiciled certificate. 

Red Flag 

Taxation rules tend to vary so please consult with your accountant or tax expert to ensure that the above information has not changed since this article was published.