Table of Contents
What Is Non-Dom Status?
The Non-Domiciled status completely exempts immigrants from the Special Defence Contribution (SDC) – a special tax that regular Cypriot tax residents pay on passive income. Specifically: 0% SDC on dividends (instead of 5% for domiciled residents), 0% SDC on interest income (instead of 30%), and since 2026, SDC on rental income has been abolished for everyone.
You receive the status automatically when you move your tax residence to Cyprus and were not born on the island. No application is needed – the requirements are verified during tax registration.
Duration and the New Extension Option Since 2026
Originally, Non-Dom status was limited to 17 years. The 2026 tax reform introduced an extension option: after the 17 years expire, you can extend the status for 5 more years by paying a lump sum of €250,000. This extension can be granted twice – up to 27 years of Non-Dom status in total.
During the extension phase, the same SDC exemptions apply as in the first 17 years. CMC calculates individually for each client whether the extension makes economic sense.
This was exactly our experience: Specifically: 0% SDC on dividends (instead of 5% for domiciled residents), 0% SDC on interest income (instead of 30%), and since 2026, SDC on rental income has been abolished for everyone. You rece...
– Entrepreneur from Hamburg, in Paphos since 2024
Concrete Tax Savings: A Calculation Example
Assume you are a shareholder of a Cypriot Limited and distribute €100,000 in dividends per year:
| Non-Dom Cyprus | Domiciled Cyprus | Germany | |
|---|---|---|---|
| SDC on Dividends | €0 | €5,000 (5%) | €26,375 (26.375%) |
| Corporate Tax (before) | €15,000 (15%) | €15,000 (15%) | ~€30,000 |
| Total Burden | €15,000 | €20,000 | ~€50,000 |
This results in annual savings of €5,000 vs. a domiciled resident and €35,000 vs. Germany.
Requirements in Detail
To obtain Non-Dom status, you must be tax resident in Cyprus (183-day rule or 60-day rule) and not domiciled in Cyprus (not born there, not lived there 17+ of the last 20 years). There is no formal application. CMC handles the tax registration and ensures your Non-Dom status is properly documented.
Non-Dom Status Explained
Costs: 0 €, 15,000 €
Topics: What Is Non-Dom Status?, Duration and the New Extension Option Since 2026, Concrete Tax Savings: A Calculation Example
CMC Practical Tip
375%) Corporate Tax (before) €15,000 (15%) €15,000 (15%) ~€30,000 Total Burden €15,000 €20,000 ~€50,000 This results in annual savings of €5,000 vs.
Frequently Asked Questions
No, the status is granted automatically when requirements are met. CMC handles tax registration and documents your status with the Tax Department.
After 17 years it expires but can be extended since 2026 for €250,000 per 5-year period (max twice). Moving tax residence away from Cyprus also ends it.
Each partner must meet requirements individually. When emigrating together, both typically receive the status.
Non-Dom remains Cyprus's strongest tax tool. SDC on dividends for regular residents dropped from 17% to 5%, for Non-Doms it stays at 0%. New: the €250,000 extension option after 17 years.
How CMC Supports You
At CMC Certus Management Consultants, we are here for you – not only for tax and legal questions, but also for all practical topics of everyday life in Cyprus. Our team in Larnaca and Pafos knows the local conditions first-hand.
As your local contact, we handle: company formation and management, tax advisory and Non-Dom applications, ongoing bookkeeping and tax returns, support with authorities, and referrals to estate agents, lawyers, doctors and tradespeople.