The Cyprus Non–Dom Regime – Who Are the Potential Applicants?

Cyprus is increasingly positioning itself as a prime destination for high-net-worth individuals due to its attractive tax regime and other factors that support wealth management. Recently Moody’s, the renowned international credit rating agency has upgraded Cyprus’s credit rating to A3 marking a significant achievement in the island’s economic strength and affirming Cyprus’s status as an investment destination ensuring financial stability in combination with enhancing investors’ confidence to invest in Cyprus.

The Cyprus non-dom program is a bundle of tax exemptions that apply to investors who move to Cyprus and become tax residents.  The program has been created to attract resourceful individuals, retirees, employees and entrepreneurs to the island by offering them an attractive and favorable tax treatment.  Some of the categories that shall be benefited from the Non Dom Regime are the following.

• High net worth individuals (HNWIs) along with individuals with global wealth who are searching for a tax efficient structure for investments are also eligible to exercise the rights granted to them by the non dom regime.
• Entrepreneurs who are interested to create or relocate their business in Cyprus, invest in the real estate industry or the tourist industry or willing to manage international portfolios could manage to become Cyprus tax residents and get benefited from the tax earnings for non dom residents.
• Individuals, expats, or nomads who work and live across many countries and are not connected or tax reside in one jurisdiction could also be benefited from the non dom regime of Cyprus.
• Recently, the UK government announced a bundle of measures including among other the abolition of the non-dom regime from 6^th April 2025. All UK residents will be taxed on the basis of assessment. However the UK residents’ non domiciled individuals shall search for other jurisdictions in order to safeguard their overseas income from a tax perspective. Cyprus non dom tax regime is now available to foreign people who are seeking an effective tax regime for the next 17 years.

While tax regimes are an important consideration for HNWIs, entrepreneurs, individuals, expats, nomads and investors, factors such as lifestyle, personal freedoms, security, and quality of life are becoming increasingly significant.  In this respect, Cyprus offers a perfect Mediterranean climate with over 300 days of sunshine annually and an expat friendly community over the island.  It has also been ranked as a safe and stable jurisdiction offering political stability, a low crime rate within EU while offering a high-level standard of living, high quality of healthcare and numerous education options.

The above factors make Cyprus not just a tax friendly jurisdiction but a place where individuals and families can enjoy a high quality of life and greater personal freedom.