Non-domiciled tax status (Cyprus SDC exemption)
Live in an EU sunbelt country without Cyprus's defence levy on your dividends and interest…
Record checked Oct 27, 2026 · official source not yet confirmed by our automated check
Summary
Cyprus tax residents who are not domiciled in Cyprus pay no Special Defence Contribution (SDC) on interest and dividend income; you claim the exemption from the Tax Department with Form T.D.38.
Dream spread
Live in an EU sunbelt country without Cyprus's defence levy on your dividends and interest.
Relocation reality check
It only removes the Special Defence Contribution, not income tax on other income. You first need to become Cyprus tax resident (over 183 days a year, or the 60-day rule, which needs a Cyprus job or business, a home in Cyprus and no more than 183 days in any other country). After 17 of the last 20 years as a Cyprus tax resident you are deemed domiciled and lose the exemption, unless you elect the alternative method and pay EUR 250,000 for each extra five-year period (maximum two). People with a Cyprus domicile of origin generally do not qualify.
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Eligibility
Cyprus tax residents (183-day or 60-day rule) without a Cyprus domicile of origin or choice, who have not been Cyprus tax resident for 17 of the last 20 years.
Costs & money
The amounts & terms on record from the official source. USD figures are estimates.
- Property purchase
- Not required
- Tax
- Non-domiciled or non-resident individuals are not subject to SDC on interest and dividends. Rental income was subject to SDC up to and including the 2025 tax year, after which SDC on rent was abolished for everyone. Deemed domicile applies after 17 of the last 20 years of Cyprus tax residence; the alternative method (Article 3D SDC Law, Circular 02/2026, Form TD 631) extends the exemption by up to two five-year periods at EUR 250,000 each.
True cost to move
Upfront cash, reimbursements, and net position after approval — not headline incentive amounts.
- Flights & logistics$1,200
- Temporary housing (90 days)$2,400
- Deposit / first month rent$2,000
- Visa & consular fees$500
Application roadmap
A practical sequence — adjust for your consulate and timeline.
1. Confirm official eligibility
Read the primary government source.
2. Gather income & employment proof
Bank statements, contracts, or tax records.
3. Book consulate / immigration appointment
Slots vary by country and season.
4. Prepare health coverage
Meet minimum coverage rules before arrival.
Meet people before you go
We are still curating 🇨🇾 Cyprus-specific communities. Meanwhile, these global boards answer relocation questions every day.
Communities being curated — start with r/expats meanwhile
- r/expats100k+ members
Life abroad, country comparisons, honest post-move retrospectives.
Source trail
We could not fully confirm the key figures against the official source. Check it yourself before relying on them.
“"Any individual who either: does not have a domicile in Cyprus (non-domiciled), or is not a Cyprus tax resident (non-resident) is not subject to Special Defence Contribution (SDC) on: rental income*; interest income; dividend income. *Rental income was subject to Special Defence Contribution up to and including the 2025 tax year, after which it was abolished." (Cyprus Tax Department)”
Primary official sourceLast checked Oct 27, 2026- Secondary referenceLast checked Oct 27, 2026
Rule changes
CasaSedora last checked the official source on 14 Nov 2026. Changes appear here once two independent automated checks agree on them, or a person confirms them.
No rule changes recorded since monitoring began.
Our summaries point you to what moved — always confirm details on the official source.