Moving to Cyprus requires separate consideration of residence permission, tax residence and domicile. Non-dom concerns tax treatment and does not itself grant a right to live or work in Cyprus.

What does non-dom offer?

A Cyprus tax resident who qualifies as non-domiciled may be exempt from Special Defence Contribution on dividends and interest. This is not an exemption from every tax: salary, business profits and other income require separate assessment. Nationality alone does not determine domicile; domicile of origin, family history and statutory exceptions matter.

When do I become tax resident?

The standard rule requires more than 183 days in Cyprus in the same tax year: at least 184 days.

Alternatively, the 60-day rule requires all of the following:

  • At least 60 days in Cyprus and no more than 183 days in any other single state.
  • Business activity or employment in Cyprus, or an office in a Cyprus tax-resident person.
  • An owned or rented permanent home in Cyprus.

Ending the relevant business, employment or office connection during the year may prevent qualification. For 2026, the separate requirement not to be tax resident elsewhere has been removed, although any dual-residence position still needs review.

Do I need a company or T.D.38?

A Cyprus company is not a general requirement for non-dom. Simply holding shares does not satisfy the professional connection required by the 60-day rule, and a shareholder’s personal exemption does not exempt company profits.

T.D.38 is the declaration for exemption as a non-domiciled individual, supported by the appropriate questionnaires and evidence. Relevant records typically concern identity, birth and family history, previous tax residence, travel days and a Cyprus home. Filing the form does not create entitlement where the legal conditions are absent.

There is no guaranteed completion time for every case. Nor is this a permit simply renewed annually: tax residence and continuing entitlement must be reviewed each year, while any requirement to resubmit forms depends on the applicable instructions and circumstances.

What about residence permits?

Where a residence permit is required, it remains necessary regardless of non-dom treatment. A standard first visitor permit lasts one year, and continuing residence requires the appropriate renewal. Visitor status does not permit economic activity in Cyprus.

For visitors, the basic resources requirement for one person is €2,000 per month or €24,000 per year, increased by 20% for a spouse and 15% per child. Specific first-permit arrangements include a €10,000 transfer or deposit, while renewal requires a minimum balance of €6,000. The prescribed banking and income evidence is also required; these figures are not non-dom eligibility thresholds.

Passive share ownership differs from personally working in or running a business. Appointing another director does not authorise activities prohibited by the shareholder’s residence permission.

Which obligations remain?

Exemption from Special Defence Contribution does not automatically exempt an individual from GHS contributions. A 2.65% contribution may apply to dividends and interest, subject to exemptions and the aggregate annual income ceiling of €180,000. For example, a €50,000 dividend carries a €1,325 contribution where it applies without an exemption or prior exhaustion of the ceiling.

Required returns, taxes and contributions remain relevant, alongside any company’s separate obligations. Previous-country tax obligations and the applicable double-tax treaty must also be considered.

How should I plan?

Planning should start before relocation, coordinating the legal, immigration and tax position and clearly allocating responsibilities between the lawyer and accountant or tax adviser.

This article provides general information and does not constitute legal or tax advice. Its application depends on the circumstances and the relevant tax year.