3 Questions about Cyprus Non Domicile Tax Residency

Cyprus has the most attractive tax regime in the European Union, and, thus, many expats and digital nomads have started to take it into consideration as an option to optimize their tax residency and expenses. 

These 3 questions about Cyprus Non-Domicile Tax Residency come from the video session hosted by Jowita, a verified tax expert for Cyprus, and Danish, visadb’s CEO. 

What is the Cyprus non-domicile regime?

You are non-domiciled if you have been living in Cyprus not more than 17 years and if you spend 60 days per year in the country. For this period of time, you are exempt from tax on dividends, and 2.65% on any profits of the dividends from your company if it is also registered in Cyprus.

How much is Cyprus corporate Tax?

Cyprus corporate tax is 12.5%. There are some exemptions, for example, if you are an IT specialist, you can apply for an IP Box, and the corporate tax might even go down to 2.5%.

Can I be a tax resident in Cyprus if I am employed by a foreign company? 

Yes, but as it is a world-income system, you would pay taxes as a normal resident. However, if you do not gain more than 19,000 EUR from the employment you are exempt from paying taxes. 

Feel free to watch the complete session about Cyprus Non Domicile Tax Residency below.