UK Abolished its Non-Dom Regime – Is Now the Time to Look at Cyprus?
UK Non-Dom Regime
The UK abolished its long-standing non-dom tax regime with effect from 6 April 2025, replacing it with a new residence-based tax regime for qualifying individuals arriving in the UK.
As a result, many internationally mobile individuals, entrepreneurs and high-net-worth individuals are reviewing their tax residency and considering alternative jurisdictions that offer an attractive combination of tax efficiency, stability and quality of life.
Time to Take a Look at Cyprus’ Non-Dom Regime
Cyprus continues to offer one of Europe’s most attractive non-dom tax regimes.
Cyprus is an excellent choice for internationally mobile individuals (both EU and non-EU nationals), whether seeking a long-term or medium-term relocation solution. Foreign individuals who become Cyprus tax residents may qualify for the Cyprus Non-Dom regime, subject to meeting the applicable conditions. The non-dom status can apply for a maximum period of 17 years.
It is worth noting that Cyprus non-dom tax residents are exempt from Special Defence Contribution (SDC) on dividend and interest income, regardless of the country of origin and irrespective of whether such income is remitted to Cyprus. In addition, gains arising from the disposal of qualifying securities are generally exempt from Cyprus taxation, subject to the applicable provisions of the Cyprus tax legislation.
These tax advantages are particularly attractive for high-net-worth individuals, entrepreneurs and investors, whose income frequently includes dividends, interest and investment gains.
Foreign individuals may become Cyprus tax residents under either the standard 183-day rule or the alternative 60-day rule, provided the relevant statutory conditions are satisfied.
Other Attractive Advantages Offered by Cyprus
In addition to its attractive tax regime, Cyprus offers numerous advantages for both individuals and businesses.
Its strategic location at the crossroads of Europe, the Middle East and Africa, combined with its European Union membership, English-based legal system and highly developed professional services sector, continues to make Cyprus an attractive jurisdiction for international business and investment.
The high quality of life is equally important. Cyprus offers a favourable Mediterranean climate, excellent international schools and universities, modern healthcare facilities, low crime rates, high-quality residential developments and English as a widely spoken business language, making it an excellent place to work, live and raise a family.
It should also be noted that Cyprus is currently considering wider tax reforms aimed at modernising and strengthening its already competitive tax system. Whilst certain proposals remain under consultation, Cyprus continues to position itself as one of Europe’s leading international business and relocation jurisdictions.
How UHY Can Help
Relocating to another country involves far more than simply changing tax residence. Careful planning is essential to ensure that immigration, tax, corporate and personal matters are addressed together.
UHY can assist with:
- Immigration and relocation advice.
- Registration with the Cyprus Tax Department.
- Cyprus tax residency planning.
- Cyprus Non-Dom advisory services.
- Company formation and corporate structuring.
- Cyprus International Trusts.
- Accounting, audit and tax compliance.
- Corporate administration and fiduciary services.
- Permanent residency and work permit applications.
- Opening bank accounts.
- Property-related matters.
With decades of experience assisting international clients, UHY provides practical, commercially focused advice tailored to each client’s individual circumstances and objectives.
Contact UHY
If you are considering relocating to Cyprus or would like to learn more about the Cyprus Non-Dom regime, our experienced team would be pleased to assist.
Email: uhy@uhy.com.cy
The contents of this publication are provided for general information purposes only and do not constitute legal, tax or professional advice. Specific advice should always be obtained based on your individual circumstances.