Tax residence is a short-term concept and is determined for each tax year in isolation, reflecting where you reside. Domicile is more long-term and refers to where you consider you have your permanent home over the course of your life. You can retain a domicile overseas even if you live in the UK for several years.
饾悋饾惃饾惏 饾惌饾惃 饾悳饾惃饾惂饾悷饾悽饾惈饾惁 饾惒饾惃饾惍饾惈 饾悕饾惃饾惂-饾悆饾惃饾惁 饾惉饾惌饾悮饾惌饾惍饾惉?
A person who is a tax resident in Cyprus is liable to pay Cyprus Income Tax (CIT) on their worldwide income, from all sources.
Additionally, domiciled residents of Cyprus pay a Special Defense Contribution (SDC) on their passive income derived from dividends, interest, and rentals as per the following rates:
Dividends 鈥� 17%
Interest Income 鈥� 30%
Rental Income 鈥� 3% of the 75% of gross rental, effective rate 2.25%
The Non-Dom Status in Cyprus is a tax regime that enables non-domiciled tax residents to effectively reduce their tax obligations by exempting them from Special Defense Contribution (SDC) for a period of 17 years.
Consequently, these individuals -when receiving dividends 鈥� are not subject to any taxes. Instead, they are solely liable for a contribution of 2.65% towards the General Health System, with a maximum cap of 4,770 EUR as payable contributions.
Obtaining non-domicile status involves acquiring a certificate from the Tax Authorities, a process that typically takes around three weeks following the submission of the application and all required documentation.
Who is eligible for Non-Dom Status?
The test starts with the following questions:
1.Has the individual been Cyprus tax resident for 17 years or more out of the last 20 years prior to the current tax year of assessment?
聽 聽 聽 聽 聽 聽 No, then move to question 2.
聽 聽 聽 聽 聽 聽 聽Yes, then the individual is Domiciled in Cyprus
2. Does the individual have a Cyprus domicile of origin?
聽 聽 聽 聽 Yes, move to question 3.
聽 聽 聽 聽 No, then the individual is considered as Non-Dom.
3. Has the individual been tax resident outside of Cyprus for the entire 20 consecutive years from 1995 until 2014?
聽 聽 聽 聽 Yes, then the individual is considered a Non-Dom.
聽 聽 聽 聽 No, move onto question 4.
4. Has the individual acquire and still maintains a domiciled of choice outside Cyprus?
聽 聽 Yes, move to question 5.
聽 聽 No, the individual is domiciled in Cyprus.
5. Has the individual been a non-Cyprus Tax resident for any 20 years consecutive period?
聽 聽 Yes, then the individual is considered a Non-Dom.
聽 聽 No, then individual is considered as domiciled in Cyprus.
