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.