Is non-dom still worth it after the 2026 reform?

For interest, yes: 0% instead of 17%. For dividends from new profits, the saving is now 5% instead of 17%, so €5,000 on a €100,000 dividend. It is still worth claiming because filing is cheap, but it's no longer the whole reason to move.

Is non-dom automatic?

No. You declare it on form TD38 in the first year you receive dividends, interest or rent you want exempt, and give form TD624/NP to paying banks and companies so they don't withhold SDC.

Does non-dom mean no tax at all?

No. Salary, business profits and pensions are taxed at normal Cyprus rates (0% up to €22,000, then 20% to 35%). GeSY applies to most income, and Cyprus property gains are taxed. Non-dom only removes SDC.

What happens after 17 years?

You become deemed domiciled and SDC applies. Since 2026 you can pay €250,000 for each of up to two further 5-year periods of exemption.

Why is the introduction free?

The adviser may pay us a referral fee if you become their client. You pay them the same as any other client, and we tell you first. See our referral disclosure.

Can I keep non-dom status if I spend most of the year elsewhere?

Only if you stay Cyprus tax resident every year. Non-dom is an exemption for Cyprus tax residents, so in any year you fail both the 183-day and the 60-day rule, it gives you nothing.

What's the most GeSY I'll pay on dividends?

€4,770 a year. GeSY is 2.65% of liable income, capped at €180,000 a year, so the charge stops rising once your total liable income passes that cap.

What happens after I ask for an introduction?

Jason reads your details and replies within one working day, usually saying whether non-dom is worth planning for your income mix. With your consent, we introduce you by email to one adviser who covers both the UK and Cyprus side; they send a fixed-fee proposal. No obligation.

Tax services · Non-dom

Cyprus Non-Dom Tax Planning: Get It Right Before Your First Dividend

Cyprus non-dom tax status means 0% Special Defence Contribution on your dividends and interest for up to 17 years, leaving only 2.65% GeSY (at most €4,770 a year). Most UK movers qualify, but the saving depends on filing form TD38 in the right year, being genuinely Cyprus tax resident and leaving the UK cleanly. We introduce you free to an adviser who sets up all three.

Vetted, licensed partners
Free introduction
Referral fees disclosed

Request an introduction

Free. I reply personally within one working day.

The short version

Non-dom status exempts Cyprus tax residents from Special Defence Contribution (SDC) on worldwide dividends and interest. You still pay 2.65% GeSY on that income, capped at €180,000 of GeSY-liable income a year.

The 2026 reform cut SDC on dividends for domiciled residents to 5% (on profits from 2026 onwards), so the non-dom saving on new profits is smaller than it was. On interest, domiciled residents still pay 17%.

Most UK nationals qualify: your domicile of origin isn't Cyprus. You become deemed domiciled after 17 of the last 20 years of Cyprus tax residence.

Since 2026, a deemed-domiciled person can buy two further 5-year periods of exemption for €250,000 each.

Non-dom does not cover salary, pensions or UK tax. It only works once you are genuinely Cyprus tax resident and non-UK resident.

What Cyprus non-dom tax status saves in 2026

Cyprus non-dom tax status matters most if you pay yourself in dividends or live on interest. Cyprus doesn't charge income tax on dividends or interest. It charges Special Defence Contribution instead, and non-doms are exempt from it.

Here's what that looks like on a €100,000 dividend from a Cyprus company, before any UK tax:

Who you are	SDC	GeSY (2.65%)	Total
Non-dom Cyprus resident	€0	€2,650	€2,650
Domiciled, dividend from 2026+ profits	€5,000 (5%)	€2,650	€7,650
Domiciled, dividend from pre-2026 profits	€17,000 (17%)	€2,650	€19,650

The company still pays 15% corporate tax on its profits first. Profits made up to 31 December 2025 and paid out by the end of 2031 keep the old 17% rate for domiciled residents, which is why timing distributions matters.

Rental income no longer carries SDC for anyone from 1 January 2026, so non-dom makes no difference there. Rent is still subject to income tax and GeSY.

Limestone sea caves near Peyia at golden hour with clear turquoise water in the hollows — The sea caves near Peyia

Why non-dom planning goes wrong

Non-dom status is simple to claim and easy to waste. The common mistakes:

Filing too late or not at all. Form TD38 (with questionnaire TD38Qa) is filed in the first year you receive dividends, interest or rent that you want exempted. Until you give banks and companies form TD624/NP, they may withhold SDC at source, and you then have to claim it back.
Not actually being tax resident. Non-dom only helps a Cyprus tax resident. If you fail the 60-day rule or the 183-day rule in a year, the exemption does nothing.
Staying UK resident. If HMRC still treats you as UK resident under the Statutory Residence Test, UK tax can apply to the same dividends.
Leaving a UK company behind. If your UK company is run from Cyprus, where it is resident for tax can change. And if you return to the UK within 5 years, the UK's temporary non-residence rules can tax some dividends paid while you were away.
Guessing your domicile. Anyone with a Cypriot parent or earlier years in Cyprus needs a proper domicile review. A false declaration is a criminal offence carrying a fine of up to €10,000.

For the background, read our non-dom guide and non-dom myths.

Tip

Employed in Cyprus? Look at the 50% salary exemption too

Non-dom does nothing for salary. If you take up your first job in Cyprus on more than €55,000 a year, Article 8(23A) of the Income Tax Law exempts 50% of that employment income for up to 17 years, provided you weren't Cyprus tax resident for a set period beforehand (KPMG, April 2026). Owner-directors who pay themselves a Cyprus salary should ask their adviser how the two regimes combine.

What a non-dom tax adviser does

A Cyprus non-dom tax adviser sets up the status and the income around it. On a typical UK business owner's case they:

Confirm your domicile using the TD38Qa questions (birthplace, parents' domicile, years lived in Cyprus).
Plan your Cyprus tax residency start date alongside your UK split year.
Review your company structure: keep, close or replace the UK company, and how a Cyprus company pays you (salary, dividends or both).
File TD38 with your district tax office and give TD624/NP to the banks and companies that pay you. Harneys says a decision typically takes about 3 weeks; other firms report several months.
Time your dividends, including pre-2026 profits still on the balance sheet.
Plan for year 17. Whether the €250,000 extension is worth it depends on how much passive income you expect later.

Good to know

What Paphos Advisor does, and what we don't

We do: help you see whether non-dom is worth planning for, put the steps in order (permit, tax residency, company, bank, TD38), and introduce you to an independent tax adviser who handles UK exits and Cyprus non-dom.

We don't: give tax advice or file forms. The adviser does, under their own engagement letter. Introductions are free; partners may pay us a referral fee, explained in our referral disclosure. Leaving the UK is its own project: see UK to Cyprus tax advice, or all our Cyprus tax advice services.

How the introduction works

01
5 minutes
Outline your income
Salary, dividends, interest, rent, pensions, and any UK or Cyprus companies.
02
We check the fit
Whether non-dom matters for you, and what needs sorting first: permit, residency or company.
03
One introduction
With your consent, to one adviser who works on both the UK and Cyprus side.
04
Fixed-fee proposal
They quote you directly. You decide. No obligation.

What non-dom tax planning costs

Fees depend on how many companies and income streams you have. These ranges are from published 2026 Cyprus fee guides; your adviser quotes in writing.

Full relocation tax engagementResidency, non-dom filing and UK exit review

€1,500–5,000

Specialist hourly rateFor one-off questions

€150–400

Annual personal tax returnDepends on income sources

€200–1,200

Total typical ranges

€1,850 – €6,600

Sources: Cyprus Tax Life and Global Law Experts (adviser fees); G. Kouzalis LLC and KPMG (2026 reform, €250,000 extension). UK-side advice is quoted separately.

Red poppies and yellow daisies under old olive trees near Paphos in spring — Poppies in an olive grove in March

Cyprus non-dom tax in numbers

SDC on dividends and interest for non-doms

2.65%

GeSY still due on dividends

capped at €180,000 of income

17 years

of non-dom status (17 of 20 years rule)

€250,000

to extend by 5 years after that

2026 reform, up to two periods

Not sure which rule makes you resident?

Run the tax route finder

Answer a few questions about your days, home and income to see whether the 183-day or 60-day rule fits, and whether non-dom is worth planning.

Find my tax route What non-dom means

Tax advisers for non-dom planning

We introduce advisers with a recognised qualification (ICPAC, ACCA, ICAEW or CIOT/ADIT) who handle non-dom filings, understand the UK residence and temporary non-residence rules, and quote fixed fees in writing.

Licensed and regulated

Registered with the right Cyprus body — Bar Association, ICPAC, CySEC or the Estate Agents Council.

Fluent with UK clients

They know HMRC, UK pensions and how British clients expect to be kept in the loop.

Vetted in person

I’ve worked with them or checked their work with people I trust. No paid listings.

Fees disclosed

If a partner pays a referral fee, I tell you before the introduction.

Partner profiles are shared privately, matched to your situation.

Request an introduction

Cyprus non-dom tax questions

Most do. If your domicile of origin is outside Cyprus and you haven't been Cyprus tax resident for 17 of the last 20 years, you can claim it. People with a Cypriot parent or a long earlier stay in Cyprus need a proper domicile review.

Free introduction

Get introduced to a non-dom tax adviser

Tell us how you're paid and when you plan to move. Jason replies within one working day, then, with your consent, introduces you to one independent adviser who plans Cyprus non-dom alongside your UK exit.

Covers UK residence and temporary non-residence rules
Recognised professional qualification
Fixed fee quoted in writing
Free to you; any referral fee disclosed first

Founder-led. Replies within one working day.

Sources checked for this page

1.Cyprus Tax Department — Form TD038 non-dom declarationGovernment
2.Cyprus Tax Department — Form TD624/NP (exemption from SDC deduction at source; €10,000 penalty)Government
3.KPMG Cyprus — Tax residency and non-dom rules (April 2026)Professional
4.G. Kouzalis LLC — Cyprus tax residency and non-dom rules explained 2026Professional
5.Harneys — Non-domicile tax regime in Cyprus (processing time)Professional
6.PwC Worldwide Tax Summaries — Cyprus individual income determinationProfessional
7.HMRC — Statutory Residence Test guidance (RDR3), including temporary non-residenceGovernment
8.Cyprus Tax Life — Find a tax advisor in Cyprus (fee ranges)Professional
9.GeSY — Contributions (2.65% on dividends and interest; €180,000 cap)Government

Written by

Jason

Founder, Paphos Advisor

British founder who moved his family from the UK to Paphos in 2025. I write down what I learned doing it properly — the tax, the residency and the living-here detail — and introduce people to the specialists I’d use myself.

How I research and fact-check

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Cyprus Non-Dom Tax Planning: Get It Right Before Your First Dividend

What Cyprus non-dom tax status saves in 2026

Why non-dom planning goes wrong

What a non-dom tax adviser does

How the introduction works

Outline your income

We check the fit

One introduction

Fixed-fee proposal

What non-dom tax planning costs

Cyprus non-dom tax in numbers

Tax advisers for non-dom planning

Cyprus non-dom tax questions

Do UK citizens qualify for Cyprus non-dom?

Is non-dom still worth it after the 2026 reform?

Is non-dom automatic?

Does non-dom mean no tax at all?

What happens after 17 years?

Why is the introduction free?

Can I keep non-dom status if I spend most of the year elsewhere?

What's the most GeSY I'll pay on dividends?

What happens after I ask for an introduction?

Get introduced to a non-dom tax adviser

Sources checked for this page

Keep reading

What Cyprus non-dom tax status saves in 2026

Why non-dom planning goes wrong

What a non-dom tax adviser does

How the introduction works

Outline your income

We check the fit

One introduction

Fixed-fee proposal

What non-dom tax planning costs

Cyprus non-dom tax in numbers

Tax advisers for non-dom planning

Cyprus non-dom tax questions

Do UK citizens qualify for Cyprus non-dom?

Is non-dom still worth it after the 2026 reform?

Is non-dom automatic?

Does non-dom mean no tax at all?

What happens after 17 years?

Why is the introduction free?

Can I keep non-dom status if I spend most of the year elsewhere?

What's the most GeSY I'll pay on dividends?

What happens after I ask for an introduction?

Get introduced to a non-dom tax adviser