EU residency with one of Europe’s strongest non-dom regimes.
Cyprus combines European Union residence with a highly attractive non-domicile regime, low physical-presence requirements and strong planning opportunities for internationally active entrepreneurs and investors.
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Residency, non-dom status, company structuring and international income planning considered together.
The tax proposition, in four numbers.
Qualifying non-domiciled tax residents can receive worldwide dividend income free from personal income tax.
The non-dom regime can also provide zero personal tax on qualifying worldwide interest income.
Certain qualifying individuals can establish Cyprus tax residence without spending the traditional 183 days in-country.
The non-domicile regime can remain available for a substantial long-term planning period.
A low-tax base inside the European Union.
Cyprus has become increasingly popular with entrepreneurs from higher-tax European countries because it combines EU residence with a comparatively flexible personal-tax environment.
The key advantage is the Non-Domicile regime, which can remove personal taxation on qualifying worldwide dividends and interest while preserving the practical benefits of living inside the EU.
Qualifying residents can benefit from zero personal tax on worldwide dividends and interest for an extended period.
The 60-day tax residence route makes Cyprus particularly interesting for genuinely mobile entrepreneurs.
Clients retain European residence, banking access and broader EU credibility while benefiting from a more favourable tax regime.
Two ways to become tax resident.
Cyprus offers both a traditional 183-day route and a significantly more flexible 60-day route for qualifying individuals with real ties to the country.
60-Day Rule
The distinctive Cyprus route for internationally mobile entrepreneurs who meet the applicable residence conditions.
Particularly relevant for founders who travel extensively and genuinely maintain Cyprus as their tax base.
183-Day Rule
The conventional route for individuals spending the majority of the year physically resident in Cyprus.
EU and non-EU clients take different routes.
The immigration side is straightforward for EU nationals, while non-EU clients generally need to rely on investment or qualifying company-based residence.
EU nationals already have freedom of movement and can register their residence in Cyprus after establishing a local address and demonstrating the relevant means of support.
A qualifying property investment can provide a permanent residence route for non-EU nationals meeting the applicable income requirements.
Certain qualifying Cyprus companies can support residence and work permits for founders and specialist employees.
This is the core Cyprus advantage.
Once an eligible individual becomes Cyprus tax resident and qualifies as non-domiciled, certain categories of investment income can receive highly favourable treatment.
For internationally active entrepreneurs and investors, this can materially change the taxation of income distributed from operating companies and investment portfolios.
The company pays tax. The dividend may not.
Cyprus becomes particularly interesting when personal non-dom treatment is combined with an appropriately structured Cyprus operating company.
The standard corporate rate applies to ordinary taxable company profits.
The Cyprus IP Box can substantially reduce the effective tax rate on qualifying intellectual-property income.
Remaining company profit may then be distributed to an eligible non-domiciled shareholder with favourable personal treatment.
Company in Cyprus. Dividends to the founder.
A common planning framework for an internationally active entrepreneur genuinely relocating to Cyprus.
The founder establishes genuine Cyprus tax residence and qualifies for the applicable non-dom treatment.
The local company conducts the underlying business and pays applicable Cyprus corporate tax.
Post-tax profits can be distributed to the eligible non-domiciled resident shareholder.
Salary, dividends, management, substance and corporate residence should be designed around the actual operating business and the founder’s wider international position.
Particularly attractive for IP-driven businesses.
Cyprus also operates an IP Box regime that can substantially reduce the effective corporate tax burden on qualifying intellectual-property income.
Eligibility and the effective rate depend on the specific intellectual property, development activity and nexus rules.
Particularly strong for European entrepreneurs.
Founders generating substantial company profits who want to combine EU residence with favourable dividend taxation.
Clients receiving significant dividends, interest or securities gains from international investments.
Businesses with qualifying intellectual property may be able to combine non-dom benefits with the Cyprus IP Box.
The headline rate is not the full story.
The low-presence rule has specific conditions and should not be treated as simply spending 60 days in Cyprus and nothing more.
Certain income can remain subject to Cyprus healthcare contributions even where ordinary personal tax is zero.
Corporate residence, management and genuine business substance remain important when operating through a Cyprus company.
Cyprus residence needs to be coordinated with a defensible termination of tax residence in the jurisdiction being left.
A tax base with European permanence.
Cyprus is not only relevant as a short-term tax strategy. EU nationals can obtain permanent residence after a period of lawful residence, while long-term residents may also have a future pathway toward Cypriot citizenship subject to the applicable naturalisation rules.
We structure more than the non-dom application.
Cyprus works best when residence, domicile status, company management, remuneration, dividends and the client's exit from their previous tax system are coordinated from the beginning.
We assess the entire structure first, then coordinate the Cyprus residence and corporate implementation with the relevant local professionals.
Could Cyprus become your European tax base?
We assess your nationality, business structure, international income, investment portfolio and mobility before determining whether Cyprus and the non-dom regime fit your situation.
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