A special tax status for expats – become Non-Domiciled in Cyprus
Understanding Non-Dom Status in Cyprus
Non-Dom status, short for “Non-Domiciled,” is a special tax status available in Cyprus that offers significant tax advantages to individuals who qualify. This status is particularly beneficial for expats, foreign investors, and high net worth individuals looking to minimise their global tax liabilities while enjoying the lifestyle and business benefits of residing in Cyprus.
To qualify for non-dom status, an individual must not have been a tax resident of Cyprus for at least 17 years before applying and must meet specific criteria regarding physical presence in the country. Once granted, non-doms enjoy exemptions from taxes on worldwide income, including dividends and interest.
What are the benefits?
No tax on worldwide dividends
This means that dividends received from international sources are not subject to Cypriot taxes, making it highly advantageous for those with international investments.
No tax on passive interest income
This includes interest from bank accounts, bonds, and other financial instruments, providing a significant tax-saving opportunity for investors.
Reduced income tax on foreign income
Foreign employment income is taxed at reduced rates, provided certain conditions are met. This is particularly beneficial for expats who work overseas but reside in Cyprus.
No Capital Gains Tax on profits of foreign assets
Cyprus Non-Doms are not liable for capital gains tax on profits generated from the sale of foreign assets. This includes shares, property, and other valuable assets located outside Cyprus.
No Estate Duty or Wealth Tax
Cyprus does not impose estate duty or wealth tax, making it an attractive destination for high net worth individuals looking to preserve their wealth for future generations.
What do you need to do?
To qualify for Non-Dom status, you must first establish residency in Cyprus. This involves spending at least 60 days in Cyprus within a calendar year while ensuring that you do not stay in another country for more than 183 days.
To be eligible, you must not be domiciled in Cyprus. Generally, if you were not born in Cyprus or have not resided there for more than 17 out of the last 20 years, you would likely qualify. You must also be able to demonstrate economic substance in Cyprus, such as having a permanent home, business operations, or significant investment.
How can we help?
At RHJ Accountants, we specialise in helping expats, foreign investors, and high net worth individuals understand and apply for Non-Dom status in Cyprus. Our team of experts will guide you through every step of the process, ensuring that you meet all the necessary criteria and submit the correct documentation.
We provide personalised advice based on your unique financial situation. From initial consultation to application submission and ongoing compliance, our comprehensive services cover all aspects of attaining and maintaining Non-Dom status in Cyprus.
Ready to explore the benefits of Non-Dom status in Cyprus? Contact us today to schedule a consultation with our expert team and start your journey towards a more advantageous tax position.
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