Euromanagement
since 1990.

No. The minimum is 60 days physically present in Cyprus per calendar year under the 60-day rule, provided you do not spend more than 183 days in any other single country, maintain a permanent home in Cyprus (owned or rented), and carry out business, employment, or direct a company in Cyprus. Full-time residency is not required, but these conditions must be met each tax year.

Non-Dom status lasts 17 consecutive tax years from the year you first become a Cyprus tax resident. Under the 2026 tax reform, individuals whose domicile of origin is outside Cyprus may extend for two further five-year periods by paying EUR 250,000 per period, giving a potential total of 27 years of exemption from Special Defence Contribution on dividend and interest income.

You are fully exempt from Special Defence Contribution on dividends and interest. Dividend income is however subject to 2.65% GHS (General Healthcare System) contribution, capped at EUR 4,770 per year. Income tax applies at standard rates from 1 January 2026: 0% up to EUR 22,000, 20% on EUR 22,001 to 32,000, 25% on EUR 32,001 to 42,000, 30% on EUR 42,001 to 72,000, and 35% above EUR 72,000. Capital gains on the disposal of shares or other securities are not taxed in Cyprus. Employment income from services rendered outside Cyprus for a non-resident employer is exempt from income tax where those services are performed for more than 90 days in the tax year.

Yes. The Non-Dom exemption applies to the individual shareholder, not the paying company. Dividends declared by a Cyprus company to a Non-Dom individual are received free of SDC regardless of the source of the underlying profits. Cyprus does not levy withholding tax on dividends paid to Non-Dom or non-resident shareholders.

You submit a Non-Dom declaration (form TD 98) to the Cyprus Tax Department confirming the residency and non-domicile conditions are met. The Tax Commissioner issues a confirmation letter within approximately two to three weeks. The declaration must be filed annually alongside your income tax return (TD 1). A Cyprus-based adviser typically prepares and submits both as part of the annual tax compliance cycle.

SDC is a Cyprus-specific tax on dividend and interest income received by Cyprus tax residents who are domiciled in Cyprus. From 1 January 2026, the SDC rate on dividends is 5% (reduced from 17%); on interest the rate is 17% (reduced from 30% in January 2024); and SDC on rental income has been abolished. Cyprus Non-Dom residents are fully exempt from SDC on all passive income.

An MLRO (Money Laundering Reporting Officer) is the senior individual within an obliged entity responsible for receiving internal suspicion reports and submitting Suspicious Transaction Reports to MOKAS (the Cyprus Financial Intelligence Unit). Any firm regulated under the Cyprus AML Law (Law 188(I)/2007) must appoint an MLRO. This includes accountancy firms, lawyers, trust and corporate service providers, and real estate agents. The MLRO must be a senior officer of the firm and is personally accountable to the regulator.

AMLA is the EU Anti-Money Laundering Authority, established under EU Regulation 2024/1620. It begins direct supervision of the highest-risk financial entities from July 2027 and enforces the EU AML Regulation (Regulation 2024/1624) from the same date. Cyprus obliged entities should begin aligning their internal policies, risk assessments, and customer due diligence procedures with the EU Single Rulebook standards now, as ICPAC is already benchmarking members against these standards ahead of 2027.

ICPAC conducts scheduled and risk-based inspections. Common triggers include late submission of the annual AML report, client complaints, or referrals from MOKAS. Findings range from written notices to administrative fines reaching EUR 1,000,000 under Article 59 of the AML Law. Persistent non-compliance can result in referral to ICPAC's disciplinary committee and, in serious cases, suspension or removal from the register.

CDD requires identity verification (passport or national ID), proof of address dated within three months, identification of the ultimate beneficial owner (UBO), and an assessment of the source of funds and purpose of the relationship. Enhanced Due Diligence applies to politically exposed persons, clients from high-risk jurisdictions, and non-face-to-face relationships. CDD records must be retained for five years after the end of the business relationship.

Cyprus requires all companies and other legal entities to register their ultimate beneficial owners (UBOs) — natural persons who ultimately own or control more than 25% — in the UBO Register maintained by the Registrar of Companies. Regulated entities must conduct enhanced due diligence and submit Suspicious Activity Reports where required under the Prevention and Suppression of Money Laundering Law.

A Cyprus holding company (HE, private limited by shares) benefits from a 15% corporate tax rate, a participation exemption that generally exempts dividends received from subsidiaries from Cyprus CIT, no withholding tax on dividends paid to non-resident shareholders, no capital gains tax on disposal of shares, and access to Cyprus's network of over 65 double tax treaties. Cyprus companies follow English common law and are straightforward to administer.

A Cyprus company can be owned by non-residents, but it must establish genuine management and control in Cyprus to be treated as a Cyprus tax resident. Tax residency follows place of effective management (POEM), not place of incorporation. A company whose board meets and makes decisions outside Cyprus risks being treated as tax resident in that other jurisdiction. To support Cyprus tax residency, the majority of the board should be Cyprus-based and board meetings should be held and minuted in Cyprus.

POEM is the test used by Cyprus tax authorities and treaty partners to determine where a company is actually managed. It looks at where the board meets, where key decisions are made, where the CEO and senior management operate, and where records are kept. A Cyprus company with directors based entirely abroad risks being treated as tax resident in another country. Cyprus applies the OECD POEM standard, referenced in its double tax treaties.

Standard incorporation at the Cyprus Registrar of Companies takes five to seven working days from submission. An expedited service is available for one to two working days. Full setup including bank account opening, VAT registration, and Tax Identification Number registration typically takes three to six weeks. Bank account opening is often the longest step and depends on the completeness of KYC documentation provided.

There is no statutory minimum employee or office requirement for a non-regulated holding company. To support Cyprus tax residency, the company should have at least one Cyprus-resident director with genuine decision-making authority, hold board meetings in Cyprus, maintain a registered office with proper administrative activity, and demonstrate that core decisions are made in Cyprus. Companies with trading or licensed activities face higher substance thresholds.

Yes. Cyprus permits non-EU nationals to incorporate and own 100% of a Cyprus company. There are no restrictions on foreign ownership of Cyprus corporate entities. Specific regulated activities such as investment services, banking, or insurance require CySEC or other regulatory approval regardless of nationality. Directors and shareholders can be non-resident.