If you were born outside Cyprus to a non-Cypriot father, you are almost certainly a non-dom. That exempts you from the Special Defence Contribution (SDC) on dividends, interest and rent for 17 tax years.
Who counts as a non-dom
- Domicile of origin is determined by your father's domicile at the time of your birth.
- "Deemed domicile" arises if you have been a Cypriot tax resident for 17 of the last 20 years.
- In practice: the relief runs for 17 tax years from your first year of residency.
- You claim it on form T.D.38 with the accompanying questionnaires at your first return, and confirm it annually.
SDC rates in 2026
| Income | Ordinary resident | Non-dom |
|---|---|---|
| Dividends (profits from 2026) | 5% | 0% |
| Dividends (profits before 2026) | 17% | 0% |
| Interest | 17% | 0% |
| Rent | abolished from 2026 | 0% |
The reform narrowed the gap considerably: for ordinary residents the dividend rate fell from 17% to 5%, SDC on rent was abolished entirely, and deemed distribution was scrapped for profits from 2026 onwards.
What happens after 17 years
From 2026 there is an option to extend the status: two consecutive five-year periods (years 18–22 and 23–27) at €250,000 as a lump sum per period — roughly €50,000 a year. The choice is irrevocable. There is no annual "non-dom fee" during the first 17 years.