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With the UK government recently announcing the end of its non-domicile (non-dom) tax regime, effective from 6 April 2025, high-net-worth individuals and others affected are seeking alternative tax residency options. For many, Cyprus has become a prime destination offering an appealing non-dom tax regime that caters to their personal, business, and financial needs in a practical, efficient manner.
Cyprus’ non-dom tax structure is a natural draw for both EU and non-EU residents looking for a short-term or long-term solution. Under Cyprus’ regime, non-dom tax benefits apply for a maximum of 17 years to foreign individuals who become tax residents of the country. Moreover, Cyprus offers a simplified “60-day rule” allowing individuals to quickly establish their tax residency – a particularly valuable feature for those in need of an immediate change.
Currently, there is strong momentum for foreigners becoming non-dom tax residents in Cyprus, using it as a base for both international and local business activities. The country’s tax benefits, combined with qualitative factors, are seen as a balanced solution. Key advantages include an exemption from Cyprus tax on dividend and interest income, irrespective of where it originates or whether it’s remitted to Cyprus. Additionally, non-dom residents are not taxed on capital gains from shares and other qualifying titles, as well as from capital gains unrelated to Cypriot immovable property. There is also no inheritance tax.
These provisions are especially attractive to high-net-worth individuals, as their income often comes largely from dividends, interest, and capital gains, making Cyprus a highly tax-efficient option.
Beyond the non-dom benefits, Cyprus offers a range of other tax advantages for individuals and companies alike. The country provides appealing conditions for business relocation and is well-suited for establishing business operations, with a cost structure that compares favorably to other major EU jurisdictions. Cyprus also benefits from a business-friendly environment and a legal system based on English common law principles, making it an ideal destination for establishing operations with ease.
Quality of life in Cyprus is another compelling factor. The island’s Mediterranean climate, blue flag beaches, low crime rate, modern infrastructure, and high-end properties – whether in vibrant cities, along the coast, or in the mountains – all contribute to a lifestyle that’s hard to match. International schools, top-tier healthcare, and a cosmopolitan atmosphere create an ideal setting for both personal and professional life.
In summary, Cyprus offers stability, a predictable business landscape, tax efficiency, and a high quality of life. With these combined benefits, it is an increasingly popular choice for those seeking an alternative non-dom solution, making it an ideal place to live, work, and raise a family.
How we can assist you?
Immigration Services
Tax Registration
Personal Tax Management
Company Setup and Administration
Directorship and Trustee Services
Company Redomiciliation
Residency and Work Permits
Banking Services
Accounting and Bookkeeping
*DISCLAIMER: This article and its publication are intended to provide a brief introduction and act as a general guide. This is provided for information purposes only and cannot be utilized as a substitute for professional advice. This document does not represent a legal opinion and one must not rely on it without receiving independent advice based on the particular facts of its own case. No responsibility is accepted by the author or the publishers for any loss suffered from acting or refraining from acting based on the contents of this publication.
Start a conversation with us today to find out how you can benefit from a relationship with Flexi Group.
Please get in contact with our Head of Business Development:
Mrs Daniella May / Head of Business Development
Tel.: + 357 7000 2 5555 / + 357 22 87 57 55
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