NON DOMICILE RULES FOR INDIVIDUALS

In accordance with the provisions of the Cyprus Tax Laws, an individual who is a tax resident of Cyprus under the provisions of the Income Tax Law (either under the 183 days rule or the 60 days rule) but is “non-domiciled” i.e. lived in Cyprus less than 17 years in the last 20 years, will be exempt from the Taxation called Special Defence Contribution (SDC).

Type of income Income tax Special Defence Contribution (SDC)
Non – Domicile Normal ratesNon – Domicile Normal rates
DividendsExempt17%ExemptZero
InterestExempt30%ExemptZero
Rental incomeTaxable3%ExemptTaxable

CERTIFICATE FOR THE CURRENT YEAR (2018)

Applies to individuals who in the relevant tax year:

(i) registers with the Cyprus Tax Department and obtain Tax No

(ii) keeps a place of residence in Cyprus (rented or purchased)

(iii) his passport shows entries and exits to Cyprus (one entry in the current year is sufficient)

(iv) submits evidence of the income to be declared in the current year, bank interest and dividends only.

Τhe “60 day rule”

(i) resides in Cyprus for at least 60 days in aggregate. The certificate can be issued BEFORE the 60 days are completed.

(ii) completes and signs declaration form TD126 of his intention to stay in Cyprus more than 60 days in aggregate. Attachment 1

(iii) must be a director of a Cyprus Company.

(iv) do not reside in any other single country for a period exceeding 183 days in aggregate,

(v) is not tax resident in any other country.

The “183 day rule”

(i) Resides in Cyprus for at least 183 days in aggregate.

(vi) Completes and signs the declaration form TD 127 that he intends to stay in Cyprus for more than 183 days in aggregate. Attachment 2

CERTIFICATE FOR THE PREVIOUS YEAR (2017)
(i) submit tax return for the year 2017 with supporting documents of the income declared.

(ii) proof that he actually stayed in 2017 in Cyprus for more than 60 or 183 days, depending on the signed declaration TD 126 or TD 127, by showing copy of his passport(entries and exits from Cyprus).

(iii) kept a place of residence in Cyprus in 2017 (rented or purchased)

(iv) specify who requested the Tax Certificate e.g. a foreign bank or Tax Authorities abroad