The UK non-dom regime has for a long time been a popular choice, mainly for high net worth individuals. The UK government has now officially confirmed that their non-dom regime will be abolished from 6 April 2025.
Current UK non-doms, as well as other foreign persons wishing to move their tax residency to another country, are on the lookout for an option or alternative which can meet their personal, business and financial needs in a practical and efficient manner.
This is where Cyprus comes in with an alternative non-dom regime
Cyprus is considered to be a prime choice of destination for such individuals (both EU and non-EU), either for a long-term or short-term solution. This is mainly attributed to the Cyprus non-dom tax regime, which is automatically applicable to foreign persons becoming tax resident in Cyprus. In each case, the non-dom tax regime effectively applies for a maximum of 17 years.
Foreign persons can now become Cyprus tax residents much easier than ever before through the very convenient 60 days route. This offers an immediate solution for cases where a new tax residency needs to be established quickly.
Currently, there is a big momentum of foreigners becoming Cyprus non-dom tax residents and effecting their international as well as local business affairs from Cyprus, as it offers a balanced combination of tax, non-tax and qualitative elements.
Non-dom resident persons are specifically exempt from Cyprus taxation on dividends and interest, irrespective of the source country and irrespective of whether the funds are remitted to Cyprus or not. Furthermore, there is a complete tax exemption on all gains from sale of shares and other qualifying titles as well as from capital gains which do not relate to immovable property situated in Cyprus. Last but not least there is no inheritance tax.
These tax exemptions are of particular interest to high-net-worth individuals, as the vast majority of their income usually derives from dividends, interest and capital gains.
Notwithstanding the above, Cyprus offers an array of other attractive tax elements for both individuals and companies and very appealing provisions to relocate businesses and key management to the island. The general infrastructure facilitates the establishment of any level of needed business and operational substance with a comparative cost advantage when compared to other prime EU jurisdictions. Further, there is the friendly business environment and attractive legal system based on the English common law principles.
The quality of life and the facilities offered are just as important. The very convenient geographical position, pleasant Mediterranean climate, an abundance of blue flag beaches, low crime rate, modern infrastructure, high-end city, beachfront or mountain properties, international schools, advanced medical care facilities as well as cosmopolitan life, make quite a strong case for Cyprus as a supreme place to work, live and raise a family.
Concluding, Cyprus offers stability, practicality, workability, predictability in the business environment, tax efficiency and peace of mind.
How can Totalserve assist?
- All Immigration Department aspects
- Registration with Cyprus tax authorities
- All ongoing personal income tax obligations
- Establishing and administering a Cyprus company
- Establishing a Cyprus International Trust
- Professional director and trustee services
- Company redomiciliations
- Permanent Residency Permits and Work Permits
- Opening of bank accounts
- Accounting/ Bookkeeping
- Property and real estate matters
More information on Totalserve’s wide range of services here. Legal services are offered through our group’s law firm E&G Economides LLC.
For any needed clarifications or assistance please contact our CEO and Head of Tax, Petros Rialas or our senior tax manager Marios Yenagrites.
