The Cyprus Non-Domicile (Non-Dom) regime is one of the most attractive for entrepreneurs and high-net-worth individuals in the EU. A Cyprus tax resident who is not domiciled in Cyprus enjoys: 0% Special Defence Contribution (SDC) on dividends, interest, and rental income for 17 consecutive years; access to the 60-day residency rule (no need to live in CY 183 days); no inheritance tax. For founders earning €1M+ in dividends from their company, savings are substantial.
You're a UK resident founder considering Cyprus relocation — do you qualify for Non-Dom?
Yes if: (1) you were not born to a Cyprus-domiciled father, (2) you have not been a Cyprus tax resident for 17 of the last 20 years. Application via TD2001 form to Cyprus Tax Department. Status valid 17 years from establishment.
60-day rule vs 183-day rule — which applies and how do you prove residency?
60-day rule: stay ≥60 days in CY, do not stay >183 days in any other country, not tax resident elsewhere, have Cyprus business/employment ties, maintain permanent home in CY. Platform tracks days via geolocation/passport stamps, generates residency dossier.
Your CY-based company pays you €500k dividend — Cyprus tax?
Non-Dom: 0% SDC, 0% income tax on dividends (dividends are not income for personal tax in CY). Total: €0 Cyprus tax on €500k dividends. Compare: UK 39.35%, Germany 26.4%, France 30%.
You sell your company for €10M — Cyprus capital gains tax?
Capital gains from sale of shares: 0% (full exemption for securities). Only Cyprus-located real estate triggers 20% capital gains. €10M share sale → €0 CY tax (vs UK 20%, US 23.8%).
The 4b2b ecosystem is designed so R&D expenses and IP-derived revenue are tracked in a separate ledger for IP Box deduction.
