High Earners and Non-doms in Cyprus
High net worth individuals and non-doms (non-domiciled individuals) are optimizing their taxes, investments and businesses in Cyprus. Recent changes to the Cyprus tax legislation provided significant incentives for non-EU individuals to invest in the island’s infrastructure.
At E.Sergiou Legal Consultants, our team specialises in guiding high earners and non-doms through the Cyprus system to maximise their earnings. Let’s look at a few of the key benefits these groups enjoy on the island.
Benefits for Non-domiciled Tax Residents
An individual is considered a Cyprus tax resident if they are physically present in Cyprus for 183 days+ per calendar year. These individuals are usually year-round residents. However, non-domiciled tax residents enjoy the following benefits:
- Non-domiciled individuals who become tax residents in Cyprus will not pay any taxes (subject to the double tax treaty agreements) even on dividends.
- Interest income from anywhere in the world is tax free.
- Rental income from Cyprus is exempt from defense tax (although still subject to other local charges).
- Remunerations exceeding €100,000 from employment exercised in Cyprus by a non-dom individual, are eligible for 50% exemption from taxation.
Benefits for High Earners
There are many reasons why high net worth or high earning individuals invest and reside in Cyprus. Here are the main reasons our clients choose this Mediterranean island:
- Non-EU residents may obtain Cyprus residency by investing a minimum amount of 300,000 Euros into one or two properties.
- EU Citizenship can be acquired by non-EU residents by the investment of 2 million Euros into property in Cyprus. The programme is popular and has already injected more than 3 billion euros into the Cyprus economy.
- At 12.5% corporate tax, Cyprus has the lowest rates in the EU making it a perfect location for high net worth individuals to run a business.
- With no inheritance or wealth tax, and tax-free dividends to shareholders, Cyprus incentivises high net worth investment.
If you are interested in investing in Cyprus, obtaining citizenship or applying for residency, speak with our E.Sergiou Legal Consultants expert team now.