Non-domicile tax New regime is set to attract more investors to Cyprus.
Cyprus offers its foreign investors the simplest, most economical gateway to Europe; The Cypriot Government has established a number of incentives to attract foreign direct investment into the country; setting forth its attractive residency and citizenship programs and low tax system, investors are choosing Cyprus for their future investment destination. Investors enjoy the privileges of Cyprus, which can either be privileges in their Country or regarding their stay in Cyprus or their movement within European Union Countries.
Cyprus offers two immigration programs for foreign investors, one is for Cyprus Permanent Residency and the other for Cyprus Citizenship. The residency program requires an investment of €300,000 in real estate while Citizenship and immediate second passport requires an investment of €2 million. Both programs are flexible and include family qualification, which allows parents, grandparents, and children to receive their respective visa with the expat investor.
On January 1st, 2017, Cyprus has introduced a new adjustment to its tax system by adding a new Law, the non-domicile status (non-dom).
This recent amendment to the Special Defense Contribution (the ‘SDC’) law; which imposes certain types of taxation for Cypriot residents, has been adjusted in the Cypriot tax system. A Cyprus tax resident who is not domiciled in Cyprus will not be subject to SDC of any interest, rental income or dividends as well as income derived from sources within Cyprus.
This new non-dom rule is expected to attract new investors, corporate executives and encourage High Net Worth Individuals to invest and reside in Cyprus, all in the hopes of yet further improving Cyprus economic development and thus making Cyprus one of the most attractive countries for investors.