Residence Permit by Investment in Cyprus
Non-dom Cyprus status (permanent residence status – more «domicile»), allows persons who do not have Cypriot «domicile» not to pay the contribution for defence. The legislation of Cyprus allows for dual citizenship, but «domicile» can only be one.
Since 2015 Cyprus introduced the status of «non-diplomatic tax resident» (non domiciled tax resident).
A tax resident of Cyprus (whether a foreigner or a citizen of Cyprus) having this status shall not be taxed by the Special Defence Contribußon (SDC) on income obtained from:
- per cent (30%)
- dividends (17%)
- rental of real estate (3%)
Income derived from the sale of shares, bonds, and other similar financial sources (including options) is also tax-exempt.
Who is considered a Cypriot tax resident?
Tax residence in Cyprus is determined by the number of days the taxpayer spends in Cyprus. A person who has been in Cyprus for at least 60 days but not more than 183 days in another country, during a calendar year, shall be considered a tax resident.
Who has the status of «Non-Micial Tax Resident» (for persons born outside Cyprus)?
A person is a «non-productive tax resident» if after moving to Cyprus it has been a tax resident of Cyprus for less than 17 of the last 20 years. In the case of foreign nationals whose economic interests are focused on Cyprus, the issue of domicile is directly related to the number of days they actually spend on the island. You must be in the country for at least 60 days in one calendar year (subject to the conditions set out above) before you can be granted a non-dom status.