Residence Permit by Investment in Cyprus

Non-dom Cyprus status (permanent residence status – more «domicile») allows persons who don’t have Cypriot «domicile» not to pay the contribution for defence. Legislation of Cyprus allows dual citizenship, but «domicile» can be only one.

Since 2015 Cyprus introduced the status of «non-diplomatic tax resident» (non domiciled tax resident). A foreigner, or every citizen of Cyprus who is a tax resident of Cyprus having this status, shall not be taxed by the Special Defence Contribution from the following kinds of income: per cent – 30%, dividends – 17%, rental of real estate – 3%. The income derived from the sale of shares, bonds, and other similar financial sources, including options, is also exempt from taxation.

A Cypriot tax resident is?

Tax residence in Cyprus is established 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-Domiciliary 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 have been in the country at least 60 days in any one calendar year (subject to the conditions set out above), before a grant of non-dom status is made.

Non dom benefits

• No special defense contribution; Non-Dom is exempt from the Special Defense Contribution (CBO) for dividends, interest and rent.
• The non-dom income from dividends, from foreign and local investments is also exempt from CBA, effective from July 16, 2015. Additionally, the dividend income is exempt from income tax without any conditions.
• Therefore, an amount of tax paid by the resident of Non-dom Cyprus on income derived from dividends will be zero. Interest income which accrues from foreign and local sources does not come under CBO w.e.f. July 16, 2015. Interest income also does not fall within the ambit of income tax. So, nil shall be the tax payable by the resident of Non-dom Cyprus on the interest income.
• Non-dom rental income from foreign and Cyprus real estate is exempt from CBO as of July 16, 2015. Rental income will be taxed only on income at normal rates (including a 20 per cent premium).

Step-by-step Acquisition of Non-dom Status

• Acquiring a residence permit in Cyprus
• Acquiring tax residence
• Declaration of Non-dom status when receiving tax residence

Procedure for Obtaining a Residence Permit in Cyprus

You can apply for a residence permit if the following conditions are met:

Note: All documents issued by a foreign authority must be translated into Greek or English and duly certified (they must be stamped ‘Apostille’ if issued by countries that have signed The Hague Convention, otherwise they must be sealed by the Ministry of Foreign Affairs of the country of extradition and diplomatic representation of the Republic of Cyprus in the country of extradition).