Cyprus Non-Dom Tax Calculator

What this uses, and what it does not

Three figures drive this calculator, and each one is taken from a primary document rather than from a summary.

• No Special Defence Contribution. The Tax Department's own Form T.D.38, the declaration a non-domiciled individual files, is headed "Declaration of Individual for Exemption as Non-Domiciled" and records entitlement "to be exempted from Special Contribution for Defence of the Republic". It is submitted in the first year the person receives dividends, interest or rents for which the exemption is claimed. Form T.D.624/NP, filed with the payer so nothing is withheld at source, cites Section 3(2)(b) of the Special Contribution for the Defence of the Republic Law No.117(I) of 2002. This is an exemption from the charge, not a reduced rate.
• No income tax on dividends. Article 8 of the Income Tax Law 118(I)/2002 lists what is exempt from tax, and item (20) is "income from dividends". That exemption is not conditional on domicile, so it applies to domiciled and non-domiciled residents alike.
• General Healthcare System contribution at 2.65%, capped at €180,000. Article 19(1)(ζ) of the General Healthcare System Law 89(I)/2001 charges every person with income at 2.65% on that income, and the definition of "income" in Article 2 expressly includes dividends. Article 19(4)(α) caps the charge: where emoluments, pensions and income together exceed €180,000, the contribution is paid on €180,000 only. That gives an annual maximum of €4,770. Article 19(4)(β) sets the order in which the cap is filled, emoluments first, then pensions, then income, which is why other income is counted before dividends here. The GHS Law carries no domicile exemption. Non-dom status reaches the Defence Contribution and nothing else.

Things this calculator does not do:

• Decide whether you are a non-dom. It assumes you already qualify. That turns on your domicile of origin, any domicile of choice, and whether you have been Cyprus tax resident for 17 of the last 20 years. Those are legal questions about your own circumstances, not arithmetic.
• Account for corporation tax. If the dividend comes from a company, that company paid tax on its profits before the dividend was declared. The figure above is what you pay on the dividend, not the total tax borne on the way to you.
• Compare Cyprus with anywhere else. We hold no verified source for another country's rates, so we publish no comparison rather than publish a number we cannot stand behind.
• Show what a domiciled resident would pay. A Cyprus resident who is domiciled in Cyprus is inside the scope of the Defence Contribution on dividends. This calculator only prices the non-dom position.
• Handle your other income. The second box is used only to work out how much of the €180,000 cap is still free. It does not charge that income. Employees, self-employed people and pensioners contribute at different GHS rates, and salary, rent and self-employment income are taxed under income tax as well.
• Handle interest. Interest is also outside the scope of the Defence Contribution for a non-dom, and is also GHS-liable, but it is not modelled here.
• Apply foreign withholding tax or treaty relief. A foreign dividend may be taxed at source in the paying country. That is outside this calculation.
• Model the Article 3D alternative method. Once the 17 of 20 year test is met you are treated as domiciled, and a separate election exists to pay a fixed amount of Defence Contribution instead. That is a different calculation with its own application and deadline.
• Tell you when to pay. Collection, withholding at source and payment deadlines are not covered here.