What Is the Cyprus Non-Dom Tax Regime?

The non-dom regime is open to individuals who were not domiciled in Cyprus at birth and who have not been tax residents here for at least 17 of the past 20 years. To qualify, you need to spend at least 60 days per year in Cyprus, not be tax resident in any other country, and either work in Cyprus or serve as a director of a Cyprus-registered company. The headline benefit is exemption from the Special Defence Contribution (SDC) tax. Without non-dom status, Cyprus tax residents pay 17% SDC on dividend income. Non-dom holders pay zero. The same exemption applies to interest income and overseas rental income. The wider tax picture makes Cyprus one of the most competitive jurisdictions in the EU. Corporate tax is capped at 12.5%. There is no capital gains tax on the sale of shares in most scenarios. There is no inheritance tax. Withholding tax on dividends paid to non-residents is zero. For entrepreneurs relocating from the UK, Germany, or Ireland, the combined saving over a 17-year non-dom period is often substantial. ZingZee works with Cyprus-based business owners who are building lean, scalable operations, and for those growing businesses with a small team, <a href="/learn/what-is-an-ai-employee" class="text-[#1EA784] underline underline-offset-2 hover:opacity-80">AI employees</a> are increasingly central to how that scalability is achieved. For related context, see <a href="/learn/what-does-an-ai-employee-cost-in-cyprus" class="text-[#1EA784] underline underline-offset-2 hover:opacity-80">AI employee cost in Cyprus</a> and <a href="/learn/how-can-ai-help-my-business" class="text-[#1EA784] underline underline-offset-2 hover:opacity-80">how AI can help businesses in Cyprus</a>.