Personal Tax Planning Cyprus
Non-Dom Regime (17-Year Exemption)
Individuals qualifying as Non-Domiciled residents are fully exempt from taxation on dividends, interest, and rental income for 17 years under the Special Defence Contribution (SDC). Under the recent tax reforms, eligible Non-Doms who complete the 17-year period may continue the Non-Dom benefits for up to two additional five-year periods, subject to a lump-sum contribution of €250,000 per five-year period (payable over five years). Non-Doms pay only the 2.65% General Healthcare System (GHS) contribution on relevant passive income, resulting in an exceptionally low effective rate.
50% Employment Income Exemption
Individuals earning over €55,000 annually from employment in Cyprus can claim a 50% income-tax exemption for 17 years, drastically reducing their effective tax burden. Combined with GHS contributions, this incentive makes Cyprus one of the most tax-efficient jurisdictions in Europe for executives and high earners relocating to the EU.
Flexible Tax Residency Options
Individuals qualifying as Non-Domiciled residents are fully exempt from taxation on dividends, interest, and rental income for 17 years under the Special Defence Contribution (SDC). Under the recent tax reforms, eligible Non-Doms who complete the 17-year period may continue the Non-Dom benefits for up to two additional five-year periods, subject to a lump-sum contribution of €250,000 per five-year period (payable over five years). Non-Doms pay only the 2.65% General Healthcare System (GHS) contribution on relevant passive income, resulting in an exceptionally low effective rate.
Extensive Double-Tax Treaty Network
Access to over 65 international treaties allows individuals to eliminate double taxation, reduce foreign withholding taxes, and protect global income streams.
Capital Gains & Inheritance Relief
There is no capital gains tax on the sale of shares or securities (except Cyprus immovable property) and no inheritance tax, ensuring efficient intergenerational wealth transfer.
Low Effective Tax Rates
Cyprus applies competitive, progressive tax bands with generous exemptions — ensuring one of the lowest overall effective tax rates in the EU. There are no wealth, inheritance, or gift taxes, making Cyprus an ideal base for long-term residency and wealth management.
Cyprus Tax Residency & Non-Dom Applications: Advising on and securing your Cyprus tax residency under the 60-day or 183-day rule, and applying for Non-Domiciled (Non-Dom) status to benefit from long-term tax exemptions on dividends, interest, and rental income.
Incorporation of a Cyprus Company: Assisting clients who wish to establish a Cyprus company for professional, consultancy, or investment purposes, enabling efficient structuring of income, profit repatriation, and access to Cyprus’s 15% corporate tax regime.
International Income Structuring: Coordinating global income streams to minimise double taxation, applying treaty relief, and ensuring transparent and efficient tax reporting across jurisdictions.
Personal & Family Tax Planning: Aligning earnings, assets, and lifestyle goals with long-term financial and residency strategies that support cross-border mobility and succession stability.
Wealth & Succession Planning: Designing compliant holding structures and asset-protection mechanisms to secure wealth for future generations under Cyprus law.
Annual Compliance & Tax Filings: Preparing and submitting tax returns, residency certificates, and correspondence with the Cyprus Tax Department, ensuring full compliance with local regulations
Relocation Concierge & Expat Advisory: Providing hands-on support with relocation logistics, from Yellow Slip applications for EU citizens to third-country residence permits, ensuring a smooth transition to life in Cyprus.
Premises Sourcing & Local Integration Helping clients identify and secure suitable residential or office premises for rent or purchase, and connecting them with trusted local service providers, banks, and property agents.
Frequently Asked Questions
Why is correct tax residency recognition so important?
Correctly establishing your tax residency is vital for effective personal tax planning. Without it, you may face dual residency claims, double taxation, or challenges from foreign tax authorities. At KIKLON Partners, we guide clients through residency rules in Cyprus and abroad, ensuring they are recognised in the right jurisdiction and benefit from favourable regimes such as the Cyprus non-dom status.
Who qualifies for Non-Dom status in Cyprus and what are the benefits?
To qualify, an individual must be a Cyprus tax resident but not domiciled in Cyprus. Once granted, Non-Dom status provides a 17-year exemption from the Special Defence Contribution (SDC), meaning no tax on dividends, interest, or rental income—only a 2.65% General Healthcare System (GHS) contribution applies. This regime is particularly advantageous for expatriates, entrepreneurs, and high-net-worth individuals relocating to Cyprus.
How can KIKLON Partners help with personal tax and relocation planning?
At KIKLON Partners, we provide end-to-end personal tax planning and relocation support, from securing Cyprus tax residency and Non-Dom status to handling residency permits, company incorporation, on-ground support, and relocation logistics. We are a trusted local partner for clients relocating, operating, and investing efficiently in Cyprus and beyond.
How does the 60-day tax residency rule work?
Cyprus offers two residency options the traditional 183 day rule and the flexible 60 day rule. Under the 60 day rule, individuals who spend at least 60 days in Cyprus, maintain a permanent residence here in Cyprus, and conduct business or employment locally can qualify as Cyprus tax residents, provided they are not tax resident in another country during the same tax year and they do not spend more than 183 days in any other single country.
Important note: “Not being resident elsewhere” is not always only about day counts. Depending on the rules of your other country, you may still be treated as tax resident there even with fewer days, especially where there are strong ties such as ongoing work, a home available for your use, close family, or other connecting factors.