What is Non-Domicile Regime?
Cyprus tax residents who are not domiciled in Cyprus are exempt from Special Defence Contribution on dividends and interest for 17 years of residence.
Finn does your books in Cyprus
AccountsOS runs full accounting for Cyprus businesses, tax, deadlines and invoicing, in plain English. Ask Finn about yours, no signup needed.
Current Rate (17 years of residence)
0% SDC on dividends and interest for 17 years
Example
A Cyprus-resident founder who is not domiciled in Cyprus takes a dividend from their Ltd and pays no SDC. GESY of 2.65% can still apply within the income cap.
How Non-Domicile Regime works in Cyprus
The 2026 reform kept the regime and abolished SDC on rents for everyone. The 60-day tax-residency rule can establish Cyprus residency for individuals who are not tax-resident elsewhere.
Eligibility depends on domicile and residence facts, so confirm it with a licensed practitioner. Finn flags the regime as a planning point and does not decide eligibility.
Related terms
Special Defence Contribution is a tax on certain passive income received by Cyprus tax-resident and domiciled individuals. From 1 January 2026 the rate on actual dividends is 5%, down from 17%.
GESY is Cyprus's national health system. Contributions are 2.90% from employers and 2.65% from employees, collected through payroll on income up to €180,000 a year per person.
Deemed dividend distribution was a rule treating a company as distributing 70% of its accounting profits two years after the year end. It is abolished for profits earned from 1 January 2026.
Confused by Cyprus accounting jargon?
AccountsOS explains Cyprus terms in plain English and applies the right rules to your books automatically.
Try Free