A non-domiciled individual in Cyprus is an individual who is not considered a tax resident of Cyprus, but who is present in the country for more than 183 days in a calendar year. Non-domiciled individuals in Cyprus may be subject to different tax rules and exemptions than Cyprus tax residents.
Non-domiciled individuals in Cyprus may be subject to taxation on their worldwide income, but only on the portion of the income that is received in Cyprus. Income received outside of Cyprus is not subject to taxation.
Non-domiciled individuals in Cyprus may be eligible for certain tax exemptions, such as the exemptions available to Cyprus tax residents.
Non-domiciled individuals in Cyprus are subject to a Special Contribution for Defense (SCD) on their income earned in Cyprus. The rate is currently set at 17% for the year 2022.
To determine whether an individual is considered a non-domiciled individual in Cyprus, a residency test is applied. This test looks at the number of days an individual has spent in Cyprus in a given tax year. If an individual is present in Cyprus for more than 183 days in a calendar year, they will be considered a Cyprus tax resident.
Cyprus has signed double taxation agreements with several countries to avoid double taxation of income earned by non-residents of those countries. Non-domiciled individuals in Cyprus who earn income from these countries may be eligible for certain tax exemptions under these agreements.
It is important to note that these rules and exemptions are subject to change and individuals should seek legal and financial advice to determine their eligibility and to ensure compliance with all relevant tax laws and regulations.