The Cyprus Non–Dom Regime – What Are Considered The Strong Points of a Non-Dom Regime?

Being at the crossroad of the three continents Europe, Asia and Africa, Cyprus is an EU member state with a stable economy low tax rates and no inheritance tax making the country not only a popular destination for lifestyle but also one of the Europe’s top spots for expats, business professionals and retirees. Following Moody’s upgrade last month, the international credit agency Standard and Poor’s upgraded the credit rating  of the Republic of Cyprus (RC) to “A-” from “BBB+”, setting its outlook to stable,  affirming Cyprus’s status as an investment destination ensuring financial stability in combination with enhancing investors’ confidence to invest in Cyprus.

Non-Dom Cyprus is a tax regime specifically designed for non-domiciled individuals who are seeking to benefit from a Non-Dom regime. These are individuals who, despite living in Cyprus, do not have their permanent home or ‘domicile’ there. This status allows them to enjoy a range of tax benefits, making it an appealing option for those considering relocation or investment in Cyprus.

It is important for HNWI when they are navigate international moves to carefully plan how to stay connected to the ties of their home country while they will benefit from the tax advantages of the new jurisdiction.

Many countries allow their citizens to maintain dual residency under certain circumstances. Here comes the Cyprus 60 day rule which comes to allow HNWIs to maintain their tax residency in Cyprus while still keeping their links to their home country. The 183 day rule allows an individual to become a tax resident by staying in Cyprus for at least 183 days in a calendar year.

Cyprus also has a favorable corporate tax rate of 12.5% which is one of the lowest in the European Union and it is recommended to investors who wished to incorporate a holding company or a business in the island. Certainly, it is considerable to mention that Cyprus imposes no capital gain tax on the sale of securities which is highly beneficial for those who invest in stocks or other assets abroad.

It is significant to point out that Cyprus has no inheritance tax or estate tax making it attractive for HNWIs who wish to pass on wealth to heirs.

While tax regimes are an important consideration for HNWIs, factors such as security, quality of life, personal freedoms and lifestyle are becoming increasingly significant.

Considering the aforementioned points and furthermore , it is also crucial to mention that  Cyprus offers an excellent climate with over 300 days of sunshine annually associated with beautiful beaches and mountains forms an excellent choice for relocation. It is also regarded as a safe jurisdiction which offers political stability and a low crime rate while the security of personal and financial assets are top priority for investors and people who are intended to stay in the island, Cyprus offers a robust legal system based on common law.

In terms of lifestyle and community, Cyprus has to offer a welcomed expats community and a high standard of living, high quality of healthcare and excellent education options.

In conclusion, it is evident that Cyprus offers a high degree of personal freedom, including relatively liberal attitudes towards social issues. The legal and regulatory frameworks around business operations are transparent, and Cyprus adheres to European standards of human rights and democratic governance.