Cyprus’s flagship non-domicile regime – the cornerstone of many expatriate tax plans – remains intact after sweeping fiscal reforms came into force on 1 January 2026. In a detailed explainer published on 7 April, C. Savva & Associates confirmed that foreign nationals who become Cypriot tax residents can still enjoy *zero* Special Defence Contribution (SDC) on worldwide dividends, bank interest and most rental income for up to 17 out of 20 consecutive years. The reform package did slash SDC on dividends for **domiciled** individuals from 17 % to 5 % and abolished SDC on local rental income for everyone, narrowing the differential but keeping the non-dom advantage decisive – especially on interest, which remains taxed at 17 % for domiciles and 0 % for non-doms. Capital-gains tax on securities stays at 0 % across the board. Crucially, legislators introduced a *buy-more-time* option: non-doms may now extend their SDC exemption by two additional five-year blocks (up to 27 years in total) by paying a lump-sum fee of €250,000 per block. Wealthy shareholders receiving large dividend streams therefore have a predictable path to lock in long-term certainty. For those who have already become deemed-domiciled, a new irrevocable election allows a flat annual SDC of €50,000 for five years in lieu of variable rates. The refreshed regime dovetails with other incentives, including the 50 % income-tax break for new high-salary employees and the simplified 60-Day residency pathway. Together they underpin Cyprus’s campaign to attract regional headquarters, fintech founders and family offices displaced by regulatory tightening in traditional ‘non-dom’ havens such as the UK and Portugal.
![Non-Dom regime survives 2026 overhaul – 17 years (and beyond) of zero SDC still on offer]()
Prospective movers who need to secure the right entry visas or residence permits before taking advantage of Cyprus’s tax perks can streamline the paperwork through VisaHQ’s dedicated Cyprus portal (https://www.visahq.com/cyprus/). The platform’s real-time requirement tracker and team of specialists handle everything from short business visas to longer-term stays, freeing you to focus on structuring your affairs rather than deciphering consular red tape.
Advisors nevertheless stress compliance: the 2026 law introduced anti-avoidance rules on ‘concealed dividends’ and tightened documentation standards for inter-company loans. Mistakes could trigger a 10 % SDC plus penalties, undermining the headline benefits. For multinationals, the message is clear – Cyprus is doubling down on its mobility-friendly tax toolkit even as corporate income tax has risen to 15 % in line with the OECD Pillar Two agreement. The package keeps the island firmly in the conversation for group holding, treasury and intellectual-property structures that require substance within the European Union.
Prospective movers who need to secure the right entry visas or residence permits before taking advantage of Cyprus’s tax perks can streamline the paperwork through VisaHQ’s dedicated Cyprus portal (https://www.visahq.com/cyprus/). The platform’s real-time requirement tracker and team of specialists handle everything from short business visas to longer-term stays, freeing you to focus on structuring your affairs rather than deciphering consular red tape.
Advisors nevertheless stress compliance: the 2026 law introduced anti-avoidance rules on ‘concealed dividends’ and tightened documentation standards for inter-company loans. Mistakes could trigger a 10 % SDC plus penalties, undermining the headline benefits. For multinationals, the message is clear – Cyprus is doubling down on its mobility-friendly tax toolkit even as corporate income tax has risen to 15 % in line with the OECD Pillar Two agreement. The package keeps the island firmly in the conversation for group holding, treasury and intellectual-property structures that require substance within the European Union.
