Cyprus Non-Dom Program
Guide to Cyprus Non-Domiciled tax status. EU residency with favorable treatment of dividends and foreign income.
Cyprus offers a "Non-Domiciled" (Non-Dom) tax status that provides significant tax advantages for new residents. It's particularly attractive for company owners receiving dividend income.
Overview
| Feature | Details |
|---|---|
| Duration | Up to 17 years |
| Type | Tax status (requires residency) |
| Key benefit | No tax on dividends |
| EU membership | Yes |
| Path to citizenship | 7 years |
Tax Benefits
Dividends
Zero tax on dividends regardless of source—this is the headline benefit. If you own a company and pay yourself in dividends, you pay 0% tax in Cyprus.
Interest Income
No tax on interest income.
Foreign Employment Income
May be exempt if earned outside Cyprus and not related to Cypriot employment.
What IS Taxed
- Cyprus-source employment income: Progressive rates up to 35%
- Self-employment income from Cyprus activities
Qualifying as Non-Dom
You qualify as non-domiciled if:
- You were not born in Cyprus, OR
- You were not a Cyprus tax resident for at least 17 out of the last 20 years
Most new residents from other countries automatically qualify.
Residency Options
60-Day Rule (for Non-EU Citizens)
Cyprus has a special 60-day rule. You can become a Cyprus tax resident by:
- Spending at least 60 days in Cyprus
- Not being tax resident elsewhere
- Having a permanent home in Cyprus
- Having business/employment income in Cyprus
183-Day Rule
Standard route: spend 183+ days in Cyprus.
Visas for Non-EU Citizens
- Temporary Residence Permit
- Permanent Residence (investment of €300,000+)
- Golden Visa programs
Cost of Living
| Location | Monthly Budget |
|---|---|
| Limassol | €2,000-4,000 |
| Nicosia | €1,500-3,000 |
| Paphos | €1,500-2,500 |
Pros & Cons
Pros:
Cons:
Cyprus + US LLC
A common structure:
- No tax on dividends (huge for company owners)
- EU membership and travel
- English widely spoken
- Good weather
- Growing tech/startup scene
- Not fully territorial (some income taxed)
- Relatively high cost of living
- Small island
- Complex company structures may be needed
- US LLC for client-facing business
- Cyprus holding company (optional, for dividends)
- Cyprus personal tax residence
This can provide 0% tax on dividends while maintaining US business credibility.
However, this structure requires professional tax advice—the interaction between US and Cyprus rules is complex.
Need help setting up a US LLC? Learn about our formation services →