04/11/2024
The UK’s non-domicile (“non-dom”) tax regime will end on 6 April 2025. Historically, this regime has been a popular choice for high-net-worth individuals. With its upcoming abolishment, current UK non-doms and foreign individuals looking to relocate their tax residency are exploring options that cater to their personal, business, and financial needs in a practical and effective manner.
Cyprus maintains an attractive alternative non-dom regime.
Known for being a prime destination for both EU and non-EU individuals, Cyprus offers a favorable tax environment for both long-term and short-term residency solutions. The Cyprus non-dom tax regime automatically applies to foreign individuals who become tax residents in Cyprus, offering benefits for up to 17 years.
Through Cyprus’ convenient "60-day route", individuals can more easily establish tax residency. This approach provides an immediate solution for those needing a new tax residency without delay. Many foreign nationals are already benefiting from Cyprus’ non-dom residency to manage their international and local business affairs, drawn by the balanced combination of tax benefits and high-quality lifestyle options.
Non-dom residents in Cyprus enjoy specific tax exemptions.
They are not subject to Cypriot taxation on dividends and interest, regardless of the source country and whether the funds are remitted to Cyprus. There is also a complete tax exemption on gains from the sale of shares and other qualifying titles, as well as on capital gains not related to immovable property in Cyprus. Importantly, Cyprus has no inheritance tax either.
These benefit especially high-net-worth individuals whose income often comprises dividends, interest, and capital gains.
Beyond these exemptions, Cyprus provides a range of other appealing tax incentives for individuals and companies, as well as attractive provisions for relocating businesses and key management to the island. Cyprus’ business environment and English common law-based legal system create a stable and cost-effective base for establishing business operations compared to other major EU jurisdictions.
Quality of life is also a significant factor.
Cyprus’ strategic location, Mediterranean climate, blue-flag beaches, low crime rate, modern infrastructure, premium properties, international schools, and advanced healthcare facilities create an ideal setting for living, working, and raising a family. Cyprus’ cosmopolitan lifestyle and balance between work and leisure make it a highly desirable relocation option.
In summary, Cyprus offers stability, tax efficiency, practicality, and peace of mind in both business and personal contexts.
PGE&Co is in a position to assist in all steps of the way in relocating to Cyprus and obtaining the non-dom status.
We remain at your disposal for any clarifications and for further assistance that might be needed on this or on any other matter.
Written by Neophytos Sofocleous
For more information, please feel free to contact me