Cyprus non dom tax benefits, and the four that are not benefits

Cyprus non dom tax benefits: what you actually get

The defence contribution is charged only on individuals who are Cyprus tax resident and domiciled in Cyprus. If you are not domiciled here, the charge does not apply. On dividends that is worth 5% a year from 2026, and on interest 17%.

It is granted on form TD38 with the domicile questionnaires, it lasts until deemed domicile arrives after 17 of 20 resident years, and after that there is a priced option: a flat EUR 50,000 a year paid as EUR 250,000 for five years, available twice.

The four that are not non-dom benefits

1. 0% income tax on dividends. True, but it is section 8(20) and it applies to every Cyprus resident, domiciled or not. Sold as a non-dom benefit constantly.
2. No tax on share gains. Also true, also universal, under section 8(22).
3. The 15% corporate rate. That is the company's rate and has nothing to do with your domicile.
4. Tax residency on 60 days. A separate test in the Income Tax Law that non-dom status neither grants nor needs.

What it never touches

• The health contribution: 2.65% on dividends and interest, capped once income reaches EUR 180,000, so at most EUR 4,770 a year. It follows residence, not domicile.
• Income tax on salary and self-employed profit, on bands reaching 35%.
• Capital gains tax at 20% on Cyprus immovable property and property-rich shares.
• The flat 8% on crypto disposals.

The reform narrowed it

Until 2025 a domiciled resident paid 17% defence contribution on dividends, so non-dom status was worth 17 points. From 2026 the rate is 5%, so it is worth five.

On EUR 200,000 of dividends that is a saving of EUR 10,000 a year rather than EUR 34,000. Still worth claiming, and no longer the reason on its own to move countries. Anyone whose Cyprus case was built on the old 17% should redo the arithmetic.

The rates and the deemed domicile rule are in Law 245(I)/2025.