If a significant part of your income comes from dividends or interest, becoming a Cyprus tax resident can create valuable planning opportunities — particularly if you qualify as non-domiciled.
NAKLAW advises individuals on Dividend and Interest Tax Exemptions in Cyprus, helping you establish whether the Non-Dom regime applies, understand the treatment of your income and put the right tax-residency and compliance position in place.
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The Cyprus Non-Dom regime can be particularly attractive for individuals who receive investment income.
But the benefit is specific.
Eligible Cyprus tax residents who qualify as non-domiciled can generally receive an exemption from Special Defense Contribution (SDC) on dividend and qualifying interest income.
This distinction matters.
Non-Dom does not simply mean "all dividends and interest are tax-free."
The key benefit relates to Special Defense Contribution.
The exemption is valuable. Understanding its boundaries is just as important.
That is why we review the person, residency status and income, not simply the payment entering the bank account.
This service can also be relevant before relocation. Understanding the potential treatment of investment income early can help you decide whether Cyprus fits your wider personal and financial plans.
The Non-Dom SDC exemption becomes relevant once you are a Cyprus tax resident and satisfy the applicable domicile conditions.
Depending on your circumstances, Cyprus tax residency may be established under the:
Generally based on spending more than 183 days in Cyprus during the relevant tax year.
An alternative for individuals satisfying the applicable day-count and Cyprus connection requirements.
Once residency is established, your domicile position can then determine whether the Non-Dom SDC exemption is available.
Getting the sequence right makes the position easier to understand and document.
Investment income can cross borders even when you do not.
A dividend may come from one jurisdiction, interest from another, while you personally become tax resident in Cyprus. That makes a cross-border legal and tax perspective important.
We are a dedicated team of experienced lawyers committed to protecting your rights and delivering justice. With years of expertise in diverse areas of law, we provide trusted legal solutions for individuals, families, and businesses.We are a dedicated team of experienced lawyers committed to protecting your rights and delivering justice. With years of expertise in diverse areas of law, we provide trusted legal solutions for individuals, families, and businesses.We are a dedicated team of experienced lawyers committed to protecting your rights and delivering justice. With years of expertise in diverse areas of law, we provide trusted legal solutions for individuals, families, and businesses.
Established in 2003 by our Managing Partner, Mr. Nasos A. Kyriakides, Nasos A. Kyriakides & Partners LLC has become one of the leading law firms in Cyprus, setting high standards of excellence in the legal profession.
Over the past 23 years, our combination of professional expertise, extensive experience, and the continued trust and support of our loyal long-standing clients has enabled the firm to grow significantly in both reputation and size.
Our commitment to delivering exceptional legal and corporate services, together with our client-focused approach and deep industry knowledge, has positioned us among the leading law firms in Cyprus. This recognition is reflected in the prestigious awards we have received, including:
CorporateINTL Global Awards 2014 – Oil & Gas Law Firm of the Year in Cyprus
CorporateINTL Global Awards 2015 – Banking & Finance Law Firm of the Year in Cyprus
In addition, our firm is proud to be a member of The Legal 500, one of the world’s leading legal directories, further reflecting our commitment to excellence and the high standards of service we provide.
Chief Executive Officer (CEO)
Following the accession of Cyprus in the EU in 2004 and the abolition of the "offshore regime", Cyprus has maintained a simplified and effective tax system in full compliance with the EU and the OECD.
As a result of the above Cyprus has become a stable EU, "non-offshore" low tax jurisdiction with a beneficial tax regime for foreign businesses and individuals as well as a safe professional business environment.
Cyprus has one of the lowest-taxation rates within the EU, with a flat tax rate at 15% on profit. Cyprus offers additionally to its tax benefits, great advantages as a respectful and useful jurisdiction for holding companies.
It is important to indicate that the business climate in Cyprus is based on a free and open economy, offering first-class legal and financial expertise. It's very easy to fly in and out of Cyprus throughout the year.
When I faced unfair treatment at work, this incredible team stood by my side, fought tirelessly for my rights, and ensured that I finally received the justice I truly deserved
We take pride in delivering justice with integrity, dedication, and trusted legal expertise. Our clients’ voices reflect the true strength of our firm
Potentially. Consider the dividend's source, your Cyprus status and any relevant foreign-country taxation together.
We work with individuals, families, startups, and large corporations across various legal matters.
Potentially. Non-Dom status concerns SDC and does not automatically remove GHS/GESY obligations. Review the applicable contribution rules and limits separately.
Yes, we provide a free 30-minute consultation to understand your case before moving forward.
Our fees are transparent and flexible — you can choose between hourly rates, flat fees, or monthly packages.
Ideally, yes. If dividends or interest form a significant part of your income, understanding their expected treatment before establishing Cyprus residency can support better relocation planning.
Yes, our team also assists with immigration & international legal matters.
You can easily schedule an appointment through our website or by contacting our office directly.
Our personalized approach, proven track record, and dedicated team of attorneys set us apart.
Eligible Non-Dom Cyprus tax residents are generally exempt from SDC on dividend income. This should not be confused with a blanket exemption from every possible Cyprus or foreign obligation.
Qualifying Non-Dom individuals can generally benefit from an SDC exemption on interest, subject to the nature of the income and applicable rules.
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+357 25-352-352
info@naklaw.com
Anexartisias & Athinon, Nora Court, 2nd Floor, Office 201-202, 3040 Limassol, Cyprus
Get in touch with our legal experts today.
The value of Non-Dom status is not simply knowing that an exemption exists. It is knowing whether you qualify, which income it covers and what obligations remain.
NAKLAW provides practical guidance on Dividend and Interest Tax Exemptions in Cyprus, connecting your Non-Dom status, investment income and ongoing Cyprus tax position within one clear plan.
