Cyprus non-dom regime: the 60-day route and what it exempts
How Cyprus non-dom status and the 60-day route can exempt dividends and interest from tax, and the small health charge that still applies.
Cyprus lets a non-domiciled tax resident receive worldwide dividends and interest with no Special Defence Contribution (SDC) for up to 17 years, and the 60-day route puts residency within reach without spending half the year on the island. This guide walks through the two residency tests, what non-dom status actually exempts, the small health-system charge that still applies, and how the 50% employment exemption sits alongside it.
How you become a Cyprus tax resident: the 183-day and 60-day tests
You become a Cyprus tax resident under either of two tests, and meeting one is enough. The first is the 183-day rule: spending more than 183 days in a calendar year in Cyprus makes you resident, with no further conditions to satisfy (PwC Cyprus, Residence).
The second is the 60-day rule, in place since 2017, which suits people who split their time across several countries. You qualify if, in the same tax year, you meet all of the following (PwC Cyprus, Residence):
| Condition | What it means |
|---|---|
| At least 60 days in Cyprus | Minimum physical presence on the island |
| No more than 183 days elsewhere | You are not tax resident anywhere else by day count |
| A Cyprus economic tie | You run a business, hold employment, or are a director of a Cyprus company, continuing to year-end |
| A permanent home | You own or rent a residence in Cyprus for the year |
From 1 January 2026 the earlier condition that you must not be treated as tax resident in another state was removed. Where two countries both claim you, the position is now settled under the tie-breaker rules of the relevant double-tax treaty (PwC Cyprus, Residence; KPMG, April 2026).
What non-dom status exempts from tax
Non-dom status exempts your worldwide dividends and interest from the Special Defence Contribution, which is where the headline saving sits. Since 16 July 2015, SDC applies only to individuals who are both Cyprus tax resident and Cyprus domiciled for SDC purposes (PwC Cyprus, Income determination). Someone who arrives from abroad is normally non-domiciled, so their dividends and interest carry 0% SDC.
The size of what you avoid is easier to see against the domiciled rate. For a domiciled resident, SDC on dividends is 17% on company profits up to 2025, falling to 5% for profits earned from 2026, with the 17% rate applying transitionally to pre-2026 profits distributed up to 2031 (PwC Cyprus, Taxes on personal income). Interest income follows a similar SDC charge for the domiciled. A non-dom sidesteps that layer entirely. Dividends and interest are already exempt from personal income tax whatever your domicile, so non-dom status is what removes the remaining SDC cost.
The exemption runs on a clock set by the deemed-domicile rule. Once you have been Cyprus tax resident for at least 17 of the previous 20 years, you are treated as domiciled in Cyprus and SDC begins to apply (KPMG, April 2026). In practice a new arrival gets close to the full 17-year run. From 2026, non-doms whose domicile of origin sits outside Cyprus can extend the exemption beyond that period for two consecutive five-year terms at a lump sum of EUR 250,000 each (KPMG, April 2026); whether an extension is worthwhile is worth confirming with an advisor.
The 2.65% health charge that still applies
Non-doms still pay the General Healthcare System contribution (GHS, known locally as GeSY) at 2.65% on dividends, interest, rental and other income. The charge is capped: contributions apply to total annual income up to EUR 180,000, so the most GHS can take from your investment income is about EUR 4,770 a year, being 2.65% of EUR 180,000 (PwC Cyprus, Other taxes).
That cap is what keeps the effective cost low on a larger portfolio. Someone drawing EUR 500,000 of dividends pays the same GHS as someone drawing EUR 180,000, because income above the ceiling carries no further contribution. GHS gives access to the public health system, so it functions more like a capped health premium than a tax on returns.
Capital gains and inheritance in Cyprus
Cyprus taxes capital gains only on real estate situated in Cyprus, and it charges no inheritance tax. Capital gains tax is 20% and applies to gains from disposing of Cyprus immovable property, or shares in companies that hold such property (PwC Cyprus, Other taxes). Gains on foreign property, and gains on listed shares and other securities, fall outside the Cyprus charge.
There is no inheritance, estate, or gift tax. Cyprus abolished estate duty on 1 January 2000 under the Estate Duty (Abolition) Law 74(I)/2000, and none has applied since (Estate Duty (Abolition) Law). Your home country’s rules may still reach your worldwide estate depending on your connections there, so succession exposure is worth checking separately with a cross-border adviser.
The 50% exemption on Cyprus employment income
If you take up your first employment in Cyprus on more than EUR 55,000 a year, half of that salary is exempt from income tax for up to 17 years. Qualifying depends on your history: you must not have been a Cyprus tax resident, and not have been employed in Cyprus, for a run of years before you start (broadly 15 consecutive years) (PwC Cyprus; KPMG, April 2026).
This relief covers employment income, while non-dom status covers passive income such as dividends and interest, so the two address different parts of your finances and can work together for someone who both earns a Cyprus salary and holds investments. Because eligibility turns on your exact residence and employment record, confirm the fit with an advisor before relying on it.
Is the Cyprus route right for you?
Cyprus tends to suit a mover with meaningful dividend or interest income and the flexibility to spend at least 60 days a year on the island. To see how the numbers land for your own income mix and timing, run the instant check or read through a sample report before you commit to a move.
Frequently asked questions
Does the 60-day rule really only need 60 days in Cyprus?
Yes, 60 days is the minimum presence, though three further conditions apply in the same year. You must spend no more than 183 days in any other single country, hold a Cyprus tie through business, employment or a directorship, and keep a permanent home you own or rent (PwC Cyprus, Residence).
How long does the non-dom SDC exemption last?
Up to 17 years. You keep non-dom status until you have been a Cyprus tax resident for 17 of the previous 20 years, at which point you become deemed-domiciled and SDC starts to apply; a paid extension is available from 2026 for those with a foreign domicile of origin (KPMG, April 2026).
Do non-doms pay anything on their dividends?
Yes, the 2.65% GHS contribution still applies, capped at EUR 180,000 of income, so a maximum of roughly EUR 4,770 a year (PwC Cyprus, Other taxes). Special Defence Contribution and personal income tax do not apply to a non-dom’s dividends.
Will I owe Cyprus capital gains tax on selling shares or a foreign home?
No. Cyprus capital gains tax at 20% applies only to Cyprus-situated real estate and to shares in companies that hold it. Gains on securities and on property located abroad sit outside the Cyprus charge (PwC Cyprus, Other taxes).
Sources
Figures verified 16 July 2026 against the following:
- PwC Worldwide Tax Summaries — Cyprus, Individual: Residence — 183-day and 60-day tests, 2026 removal of the “not resident elsewhere” condition.
- PwC Worldwide Tax Summaries — Cyprus, Individual: Income determination — SDC applies only to Cyprus tax resident and domiciled individuals since 16 July 2015.
- PwC Worldwide Tax Summaries — Cyprus, Individual: Taxes on personal income — SDC on dividends of 17% (pre-2026 profits) and 5% (2026 profits onward).
- PwC Worldwide Tax Summaries — Cyprus, Individual: Other taxes — GHS 2.65% and EUR 180,000 cap; capital gains tax 20% on Cyprus immovable property.
- KPMG Cyprus — Tax residency and non-dom rules (April 2026) — 17-of-20-years deemed-domicile rule, EUR 250,000 extension, 50% employment exemption conditions.
- Estate Duty (Abolition) Law 74(I)/2000 — abolition of inheritance and estate duty from 1 January 2000.