Cyprus has become one of the most attractive jurisdictions for international investors and professionals, thanks to its favorable tax regime for Non-Domiciled (Non-Dom) residents. The Cyprus Non-Dom 2026 program allows qualifying individuals to benefit from significant tax advantages, including 0% Special Defence Contribution (SDC) on dividends and interest. This complete guide will help you understand who qualifies, the associated costs, and how to make the most of these benefits legally and efficiently. Whether you are planning to relocate, invest, or structure your company, understanding Cyprus Non-Dom rules is essential to maximize tax efficiency. By reading this guide, you’ll gain clear insights into the latest updates for 2026, including the corporate tax rate change to 15%, residency requirements, and strategies to maintain Non-Dom status for the long term.
Cyprus Non-Dom (Non-Domiciled) status is a special residency classification that provides individuals with significant tax advantages.
To qualify, you must be a tax resident in Cyprus and meet certain domicile conditions. Non-Dom status primarily benefits individuals who receive dividend income, interest, and certain capital gains.
The program is designed for international investors, professionals, and high-net-worth individuals seeking tax efficiency in Europe while enjoying Cyprus’s high standard of living.
The **main benefit of Cyprus Non-Dom 2026** is the exemption from Special Defence Contribution (SDC) on dividend and interest income, applicable to both local and foreign sources.
Other important benefits include:
- No SDC on rental income.
- No inheritance or wealth taxes.
- Flexible estate planning opportunities.
- Ability to extend Non-Dom status beyond 17 years through a structured payment.
These incentives make Cyprus highly competitive compared to other European tax jurisdictions.
To qualify as a Non-Dom in Cyprus, you must:
- Be tax resident in Cyprus for at least 60 days per year.
- Maintain no tax residency in another country.
- Have employment or business ties to Cyprus (or sufficient economic interests).
- Not have been a tax resident in Cyprus for at least 17 out of the last 20 years before the application.
Meeting these criteria ensures legal protection and full access to Non-Dom benefits.
While the standard Non-Dom status is granted for 17 years, Cyprus allows an **extension beyond 17 years** through a structured one-time payment (€250,000 per 5-year block).
Applicants should also consider administrative fees, potential relocation costs, and ongoing compliance requirements. Planning ahead can optimize benefits while minimizing costs.
As of 2026, the Cyprus corporate tax rate has increased to **15%**, applicable to resident companies. Non-Doms owning businesses benefit indirectly, as dividends received from these companies remain exempt from SDC.
Proper structuring of your Cyprus business and personal finances is crucial to maximize tax efficiency, taking full advantage of both corporate and Non-Dom benefits.
Q: Who qualifies for Cyprus Non-Dom status in 2026?
A: Individuals who are tax residents in Cyprus, have not been Cyprus tax residents for 17 of the last 20 years, and maintain no other tax residency can qualify for Non-Dom status.
Q: What tax benefits do Non-Doms enjoy?
A: Non-Doms enjoy 0% SDC on dividends and interest, no SDC on rental income, no inheritance taxes, and flexible estate planning options.
Q: How long does Non-Dom status last?
A: Standard Non-Dom status lasts 17 years, but it can be extended beyond this period through a structured one-time payment every 5 years.
Q: Has the corporate tax rate in Cyprus changed for 2026?
A: Yes, the corporate tax rate is now 15%. Non-Doms still benefit as dividends received remain exempt from SDC.
Q: Can Non-Doms lose their status?
A: Yes, failing to meet residency requirements, maintaining tax residency elsewhere, or non-compliance with Cyprus tax rules may result in loss of Non-Dom status.