What is the Non-Dom Status? And why is it so popular?

The Cyprus Government introduced the Non-Domiciled, or ‘Non-Dom’ status to make Cyprus more attractive to foreign investors, by granting them significant tax benefits.

Individuals who become Cyprus Tax Residents (either under the 183-Day or the 60-Day Rule) and moved their tax residency to Cyprus from abroad, may apply and be considered as ‘non-domiciled’ in Cyprus.

Tax-Benefits under the Non-Dom Status

The so-called Non-Dom Status exempts its holders from the obligation to pay Special Defence Contribution (SDC) for a period of up to 17 years.

SDC is a tax levied on dividends, interest and rental income. Indicatively, SDC on Dividends is levied at a rate of 17%.

The Non-Dom Status combined with the 60-day Rule have proven extremely popular with location-independent entrepreneurs and business owners as it allows them to receive dividends from their businesses without paying withholding tax.

Looking to find out more? Contact our team at info@paraschou.com.cy