Cyprus new 15% CIT + 5k non dom fee

[Don]

In Cyprus, there are some tax changes ahead:

• The corporate income tax rate would be increased from 12.5% to 15% for all corporations.
• A New annual fee of €5,000 for individuals who have received the non-dom status
• For normal Cyprus tax residents, the existing SDC on rental income would be abolished, and the SDC rate on dividends would be reduced from 17% to 5% for natural persons who are tax residents and domiciled in Cyprus. Anti-abuse rules will be introduced for disguised dividends.
• For non-doms, so far, dividends have been subject to a capped minimal 2.65% healthcare contribution on dividends up to €180,000. Seems like it continues to apply.

https://taxnews.ey.com/news/2025-0579-cypriot-government-announces-tax-reform-measures

 

[Marzio]

Malta is definitely more attractive.

Anti-abuse rules will be introduced for disguised dividends.

This is the kicker since everyone and their dog are managing US LLC pretending to receive dividends.

 

[Don]

Malta is definitely more attractive.



This is the kicker since everyone and their dog are managing US LLC pretending to receive dividends.

It's not easy to beat paying just 5% CIT and 5k flat personal income tax per year.

 

[ilke]

EUSSR doing EUSSR things...

Malta is definitely more attractive.

I would argue nothing in the EU is particularly attractive, but it is a decent choice in its current state.

 

[Marzio]

I would argue nothing in the EU is particularly attractive, but it is a decent choice in its current state.

I bet Malta will be forced to change by EU idiocrats its full imputation system and there will not be any option left in EU to optimize taxes.

 

[Doji]

• A New annual fee of €5,000 for individuals who have received the non-dom status

Source for this?

 

[Thomas67]

In Cyprus, there are some tax changes ahead:

• The corporate income tax rate would be increased from 12.5% to 15% for all corporations.
• A New annual fee of €5,000 for individuals who have received the non-dom status
• For normal Cyprus tax residents, the existing SDC on rental income would be abolished, and the SDC rate on dividends would be reduced from 17% to 5% for natural persons who are tax residents and domiciled in Cyprus. Anti-abuse rules will be introduced for disguised dividends.
• For non-doms, so far, dividends have been subject to a capped minimal 2.65% healthcare contribution on dividends up to €180,000. Seems like it continues to apply.

https://taxnews.ey.com/news/2025-0579-cypriot-government-announces-tax-reform-measures

Many thanks for the proactive overview and related source

Bad news for the 5k annual non dom fee (I assume for all non doms, not only new ones), it's the price or more than the price of a company set up

 

[dziter]

Does anyone have a "reliable" source mentioning this non-dom annual fee?
I do not see anything online. If it's the case, I believe many people will move out.

Can you even get rid of this non-dom status to avoid this fee?

 

[Thomas67]

As a complement, I've found the following, incl. its FAQ: https://sunshadowinvest.com/cyprus-...are certain fees,who have received the status.
https://sunshadowinvest.com/cyprus-...re certain fees,who have received the status.

 

[Doji]

As a complement, I've found the following, incl. its FAQ: https://sunshadowinvest.com/cyprus-non-domiciled-status-program/#:~:text=Yes, there are certain fees,who have received the status.
https://sunshadowinvest.com/cyprus-non-domiciled-status-program/#:~:text=Yes, there are certain fees,who have received the status.

That's the only "source" I found as well. Hope it turns out false. 15% + 5k + 4.7k (2.65%) is getting too ridiculous.

 

[mrpayments]

from the EY link - "The current applicable period (17 years) of non-domicile status for individuals would not change, although an option for extending the period will be provided with the imposition of an annual fee."

I read that as meaning that if you want to extend the non-dom status past 17 years you can pay a fee from year 18 onwards. No mention of 5000 EUR being the fee apart from the Sun Shadow Invest link?

 

[Thomas67]

from the EY link - "The current applicable period (17 years) of non-domicile status for individuals would not change, although an option for extending the period will be provided with the imposition of an annual fee."

I read that as meaning that if you want to extend the non-dom status past 17 years you can pay a fee from year 18 onwards. No mention of 5000 EUR being the fee apart from the Sun Shadow Invest link?

Interesting comment. I've asked SunShadowInvest for their official source.

 

[CyprusLaw]

Interesting comment. I've asked SunShadowInvest for their official source.

There is no such thing as an annual fee for non doms, this was never announced and never discussed. Also, all of the above, such as the CIT increase are just proposals, nothing has been passed yet, and nothing will pass until at least 2026