The UK Non-Dom Regime ends
The Cyprus Gateway: A Strategic and Family-Friendly Hub with Vast Business Opportunities
Starting in April 2025, the concept of non-domicile will be removed from the UK tax system and be replaced with a new framework for taxing the foreign income and gains (FIG) of individuals who become UK residents.
THE CYPRUS NON-DOM REGIME
The Cyprus non-Dom Regime due to its simplicity, transparency, and an unparalleled package of benefits makes it a top choice for non-domiciled individuals such as asset managers and entrepreneurs seeking a tax-efficient jurisdiction, as tax policies in other countries (such as the UK), become less favorable.
Key Benefits of the Cyprus Non-Dom Regime
- 17-Year Tax Exemption on Foreign Income
- No Inheritance Tax or Wealth Tax
- Lowest Personal Tax Rate in the EU
- Corporate Tax Rate of 12.5%
- Full exemption from Cyprus taxation on dividends and interest
- Full Exemption from Cyprus taxation on capital gains from sale of shares and on capital gains if the assets do not include any Cyprus-based immovable property.
- Non-doms who earn over €55,000 annually from employment exercised in Cyprus (provided they were resident outside Cyprus before the commencement of their employment), can also enjoy a 50% exemption for those earnings, applicable for 17 years commencing from the year of employment.
Cyprus Tax Residency
In Cyprus, domicile is defined in two ways: (a) domicile of origin, which an individual inherits at birth, and (b) domicile of choice, which an individual acquires by establishing a permanent residence in a specific place.
The concept of “non-domicile” refers to individuals who are tax residents in Cyprus but do not have a domicile there, which entitles them to several tax advantages.
Determining Cyprus tax residency is based on either the:
- 183-day rule, where an individual is considered a tax resident if they spend at least 183 days (no need to be consecutive) in Cyprus within a calendar year; or the
- 60-day rule, where an individual is considered a tax resident if they spend at least 60 days (no need to be consecutive) in Cyprus within a calendar year and meet the following conditions: (i) not residing in any other single country for more than 183 days in the same year, and (ii) not be a tax resident of any other country, and (iii) maintaining a permanent residence (owned or rented) in Cyprus, and (iv) engaging in business or employment or holding an office in Cyprus (with a legal or natural person resident in Cyprus) at any time during the tax year, provided that such activities are not terminated during that year.
Why Cyprus Offers More Than You Expect
- High Quality of Life
- Business Friendly Environment
- Family Friendly Environment and High-Level Schools
- English – a widely spoken language
- Robust Legal System based on English common law
- EU Membership and Stability
- Strategic Location
- Sunny and Warm Climate
- Low Crime Rate
HOW WE CAN HELP
Our team of professionals is committed to ensuring a seamless and efficient transition, offering bespoke solutions that optimize your experience while fully capitalizing on the significant benefits of Cyprus’ highly advantageous non-Dom Regime. In addition, you will benefit from comprehensive guidance and access to a broad spectrum of services, all designed to protect and enhance your wealth, safeguard your business interests, and provide operational flexibility—while ensuring unwavering compliance with local laws and regulations.
Our comprehensive suite of services includes:
- Immigration & Relocation services
- Property & Real Estate services
- Creation of Family Offices, including continuous Legal Advice and Support
- Family & Corporate Governance Advisory
- Creating and administrating a Cyprus company, including:
- Secretarial services
- Nominee director services
- Nominee shareholder services
- Registered Office
- Compliance services
- Bank account administration services
- Redomiciliations
- Establishing and administrating a Cyprus International Trust, including:
- Professional Trustee services
- Professional Protector services
- Legal Advice on Cyprus Trusts
Cyprus awaits as your new family and business home, and we are here to help. Contact us at info@kouloundilaw.com for more information and assistance.