Cyprus non-domicile status and Special Defence Contribution

This Guide covers Cyprus non-domicile ("non-dom") status for individuals: the tax residence tests, the domicile tests, the Special Defence Contribution (SDC) exemption that non-dom status gives, the 2026 changes to SDC, and the optional lump-sum extension for long-stay residents. Figures are for tax year 2026. Cyprus taxes on a calendar year. Income tax itself, the new-resident income tax exemptions in detail, and wider planning are in the sibling Guides cyprus-income-tax and cyprus-tax-optimization.

Section 1: Quick Reference

Field	Value
Country	Cyprus
What non-dom status changes	Special Defence Contribution only. An individual who is not domiciled in Cyprus, or is not tax resident, is not subject to SDC on interest or dividends (rental income: SDC applied only up to and including the 2025 tax year).
What it does not change	Income tax. The residency page lists SDC as the only tax consequence of non-dom status, and the 2026 income tax scale carries no domicile condition (Section 6).
SDC charged on	Individuals who are BOTH tax resident AND domiciled in Cyprus (Section 3)
Domicile tests	Domicile of origin, with two exceptions, plus the deemed domicile rule of 17 out of the last 20 years (Section 2)
2026 SDC changes	Dividend rate cut for individuals, SDC on rent abolished from 1 January 2026, optional lump-sum extension of non-dom treatment (Sections 3 and 3A)
Primary legislation	Special Contribution for the Defence of the Republic of Cyprus Law of 2002 (Law 117(I)/2002), as amended; Income Tax Law of 2002 (N.118(I)/2002), article 2
Tax authority	Tax Department, https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/

Section 2: What is Non-Dom Status?

SDC is charged only on a "resident of the Republic". For SDC that means an individual who is tax resident for income tax (Section 5) AND has a domicile in Cyprus. Non-dom status is therefore about domicile, not about where the person lives.

Source	all figures below	https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/
Item	Rule	Note (verbatim)
Resident for SDC	Tax resident for income tax AND domiciled in Cyprus	"a Cyprus resident for income tax purposes, as described above under Tax Residency , and who additionally has a domicile in Cyprus"
General rule	Domicile in Cyprus follows a Cypriot domicile of origin	"In general, an individual is considered to have a domicile in Cyprus if their domicile of origin is in Cyprus"
Domicile of origin	Normally acquired at birth, as a general rule the father's domicile; exceptionally the mother's	"as a general rule, is the same as the father’s domicile at the time of the child’s birth"
Exception 1 (Cypriot domicile of origin)	Treated as not domiciled if BOTH: has acquired and keeps a domicile of choice outside Cyprus, AND was not Cyprus tax resident for at least 20 consecutive years immediately before the tax year	"was not a Cyprus tax resident for at least 20 consecutive years immediately before the relevant tax year"
Exception 2 (Cypriot domicile of origin)	Treated as not domiciled if resided abroad for more than 20 consecutive years before 16 July 2015	"resided abroad for more than 20 consecutive years before 16 July 2015"
Deemed domicile	Whatever the domicile of origin: tax resident for at least 17 of the 20 years immediately before the tax year means deemed domiciled	"at least 17 out of the last 20 years immediately before the tax year is deemed to acquire a domicile in Cyprus"
How long deemed domicile lasts	Kept until the person completes 20 years in which they are not Cyprus tax resident	"That domicile is retained until the individual completes 20 years during which they are not a Cyprus tax resident"

How to read the deemed domicile rule:

• Count income tax residence years only. The test looks at the 20 tax years immediately BEFORE the year being tested, and asks for at least 17 resident years among them. The page asks only for "at least 17 out of the last 20 years"; it sets no condition that those years be consecutive.
• A person whose 17th resident year is 2026 is tested for 2027 against the years 2007 to 2026. The test for a given year never counts that year itself.
• Once deemed domiciled, leaving Cyprus does not end it quickly. The 2026 SDC presentation (table in Section 3) says the 20 non-resident years are "όχι απαραίτητα συναπτών" (not necessarily consecutive), and its example keeps the domicile for a person who returns after only 4 non-resident years even though they were then resident for only 16 of the last 20 years.
• A person with a foreign domicile of origin who has spent fewer than 17 of the last 20 years as a Cyprus tax resident is non-dom on these rules. The page does not discuss a foreigner who forms a domicile of choice in Cyprus. Refer that case.

Section 3: SDC Exemption: The Main Benefit

Any individual who is either not domiciled in Cyprus or not Cyprus tax resident is not subject to SDC on interest income or dividend income. Rental income was also covered, but SDC on rent no longer exists from 1 January 2026, for everyone. The exemption applies year by year: a person who becomes deemed domiciled loses it from that tax year unless they use the alternative method in Section 3A.

Source	all figures below	https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/
Item	Rule	Note (verbatim)
Who is outside SDC	Non-domiciled OR non-resident individuals	"does not have a domicile in Cyprus (non-domiciled) , or is not a Cyprus tax resident (non-resident) is not subject to Special Defence Contribution (SDC) on: rental income*; interest income; dividend income"
Rent	SDC on rent ended after tax year 2025	"Rental income was subject to Special Defence Contribution up to and including the 2025 tax year , after which it was abolished"
Claiming the exemption	Apply for exemption from SDC on Form T.D.38 (the page text calls it T.F.38)	"you may apply for exemption from the payment of Special Defence Contribution by completing Form T.F.38"

What a domiciled resident pays instead, from 2026. These rates apply only to individuals who are both tax resident and domiciled; for a non-dom the SDC is nil.

Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf
Item	Rate or rule	Note (verbatim)
Dividends received by individuals, from 2026	5%	"Άτομα σε ποσοστό 5% (μείωση από το 17%)"
Dividends from a Cyprus-resident company out of profits of tax years up to and including 2025, received up to and including 31 December 2031	17%	"Καταβάλλεται ΕΕΑ σε ποσοστό 17% επί των μερισμάτων που λαμβάνονται από εταιρεία κάτοικο της Δημοκρατίας μέχρι και την 31/12/2031"
Dividends outside SDC	No SDC on a dividend already deemed distributed in an earlier year, or paid out of income that comes directly or indirectly from dividends on which SDC was paid	"Δεν καταβάλλεται ΕΕΑ στο μέρισμα που: είχε λογιστεί ως διανεμηθέν σε προηγούμενο έτος, εκδίδεται από εισοδήματα που προέρχονται άμεσα ή έμμεσα από μερίσματα στα οποία καταβλήθηκε EEA"
Official example: dividends received in 2027	17% on the part paid from 2025 profits, 5% on the part paid from 2026 profits	"σε ποσοστό 17% επί του (α) και ➢ σε ποσοστό 5% επί του (β)"
Interest received or credited to a resident (domiciled) individual	17%	"αναφορικά με τόκο που λαμβάνει ή πιστώνεται, σε 17%"
Interest on Cyprus or other EU government savings certificates or development bonds, on corporate bonds listed on a recognised stock exchange, and on listed bonds of Cyprus or other EU local authorities or state bodies	3%	"σε ποσοστό τρία τοις εκατό (3%)"
Rent	SDC abolished from 1 January 2026	"Κατάργηση από 1/1/2026 της ΕΕΑ σε εισόδημα από ενοίκια"
Deemed dividend distribution	Abolished for company profits of 2026 onward	"Κατάργηση της λογιζόμενης διανομής των κερδών των ετών από το 2026 και εντεύθεν"
Non-dom status kept by the reform	Non-dom regime retained	"Διατηρείται το καθεστώς non-dom"
Deemed domicile ends only after 20 non-resident years	Not necessarily consecutive	"μέχρι τη συμπλήρωση είκοσι (20) ετών, όχι απαραίτητα συναπτών"

Section 3A: Extending non-dom treatment by lump sum (Article 3D, from 2026)

An individual who does NOT have a Cypriot domicile of origin, but is deemed domiciled because they were tax resident for at least 17 of the last 20 years, may elect the "Alternative Method of Imposition of Special Defence Contribution" under Article 3D of the SDC Law and Circular 02/2026. It extends the exemption for up to two further five-year periods. A person with a Cypriot domicile of origin cannot use it.

Source	all figures below	https://www.gov.cy/media/sites/167/2026/06/Application-Extension-of-Non-Dom.pdf
Item	Rule	Note (verbatim)
Amount for each five-year period	EUR 250,000	"The Special Defence Contribution for the entire 5‑year period (€250,000) must be paid by the end of the month which follows the month in which the application is approved"
Form	Form TD 631, submitted through the Tax For All (TFA) portal as a message, topic "Application for the extension of the non-dom regime"	"submitted via the Tax For All (TFA) Portal"
Application deadline	By 30 June of the first year of the five-year period it covers	"This application shall be submitted by 30 June of the first year of the 5-year period to which it relates"
Early application	Up to two years before the tax year in which the person will be deemed domiciled	"may also be submitted in advance, up to two (2) years prior to the tax year in which the individual will be considered domiciled"
Required documents	Form T.D.38Qa with its documents; clean criminal record certificates from Cyprus and every country of citizenship; Tax Department certificate confirming the person is not domiciled	"Certificate issued by the the Tax Department confirming that you are not domiciled in the Republic of Cyprus"
Unpaid liability	Written off when the payment deadline passes; the person then pays SDC as a domiciled resident for that year (next table)	"In case the said liability is not settled, it will be written off upon the expiration of the payment deadline"

Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf
Item	Rule	Note (verbatim)
Annual equivalent, two five-year periods	EUR 50,000 a year	"κατ’ αποκοπή ετήσιο ποσό ΕΕΑ ύψους €50.000"
Irrevocable	The election cannot be withdrawn	"Ανέκκλητη επιλογή του ατόμου"
Not automatic	A new application, approved by the Commissioner, for EACH five-year period	"απαιτεί την υποβολή αίτησης στον Έφορο για κάθε 5ετή περίοδο, η οποία θα πρέπει να τύχει της έγκρισής του"
Late application or late payment	For that year the person pays SDC as a domiciled resident on actual income, and may apply again the next year	"για το συγκεκριμένο έτος το άτομο καταβάλλει ΕΕΑ ως κάτοικος με βάση τα εισοδήματά του"
Effect of payment	Settles ALL SDC for the five tax years covered	"εξαντλεί κάθε υποχρέωση του ατόμου αναφορικά με ΕΕΑ για τα πέντε (5) φορολογικά έτη"
No refund	Not refunded for any reason	"δεν επιστρέφεται για οποιονδήποτε λόγο"
No offset, no foreign tax credit	Not set against other tax or credit balances, and not reduced by foreign tax	"δεν μειώνεται με έκπτωση αναφορικά με αλλοδαπό φόρο"

The lump sum is a fixed charge. Whether it beats paying SDC at the domiciled rates in the table above depends on the client's expected dividends and interest over the five years. Compare the two on the client's own figures before the 30 June deadline; the Guide does not supply a break-even.

Section 4: Capital Gains

Non-dom status is an SDC concept. The residency page lists no Capital Gains Tax (CGT) consequence of it. Shares are not always outside CGT. Shares in companies that own Cyprus immovable property can be caught, as the table below shows.

Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf
Item	Rule	Note (verbatim)
Shares of a company that holds Cyprus immovable property directly	Count as property for CGT, whatever the percentage	"οι μετοχές εταιρείας, η οποία κατέχει άμεσα ακίνητη ιδιοκτησία συνιστούν ιδιοκτησία ανεξαρτήτως ποσοστού"
Shares of a company that holds Cyprus immovable property indirectly, through other companies, from 2026	Count as property for CGT if at least 20% of their market value comes from Cyprus immovable property	"εάν τουλάχιστον το 20% (αντί του 50%) της αγοραίας αξίας τους προέρχεται από την ακίνητη ιδιοκτησία στη Δημοκρατία"
Shares listed on a regulated market of a recognised stock exchange	Exemption kept	"Διατηρήθηκε η εξαίρεση από την καταβολή ΦΚΚ"
Shares listed on a non-regulated market of a recognised stock exchange	Exempt only while total disposals in the year do not exceed EUR 50,000; the disposal that crosses it brings CGT on all disposals made in the year up to and including that disposal	"δεν υπερβαίνει σωρευτικά τις €50.000"
Shares held at 31 December 2025 that were then listed on a non-regulated market	Exemption continues for those shares whatever the year's total disposals	"η εξαίρεση αναφορικά με την πώληση μετοχών εισηγμένων σε μη ρυθμιζόμενη αγορά συνεχίζει να εφαρμόζεται σε μέτοχο για μετοχές που κατείχε κατά την 31/12/2025, οι οποίες κατά την εν λόγω ημερομηνία ήταν εισηγμένες σε μη ρυθμιζόμενη αγορά"

The Tax Department's CGT page prints the rate and the lifetime exemptions. Indexation, the agricultural-land and main-residence exemptions and their conditions are outside this Guide; refer those computations.

Source	all figures below	https://www.gov.cy/mof-tax/documents/kefalaioychika-kerdi/
Item	Rule	Note (verbatim)
CGT rate	20% of the gain on a disposal of Cyprus immovable property or of shares in companies holding Cyprus immovable property, whatever the tax residence of the seller, subject to double tax treaty provisions	"Φόρος κεφαλαιουχικών κερδών επιβάλλεται ως ποσοστό 20%, στο κέρδος που προκύπτει από τη διάθεση ακινήτων στην Κύπρο ή από την πώληση μετοχών εταιρειών που κατέχουν ακίνητα στην Κύπρο (με την επιφύλαξη διατάξεων περί διπλής φορολογίας) ανεξάρτητα από τη φορολογική κατοικία μιας εταιρείας ή ενός ατόμου"
General lifetime exemption, disposals from 1 January 2026	EUR 30,000, individuals only, once in a lifetime; any unused balance carries to a later disposal	"Ημερομηνία διάθεσης από 01/01/2026 Απαλλαγές € Γενική απαλλαγή σε κέρδος που προκύπτει από διάθεση ιδιοκτησίας 30.000"
Lifetime rule	Natural persons only; claimed once; remainder carried forward	"Αυτές οι απαλλαγές μπορούν να διεκδικηθούν μόνο μια φορά εφ' όρου ζωής. Τυχόν εναπομείναν ποσό απαλλαγής μεταφέρεται σε επόμενη διάθεση"

Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf
Item	Rule	Note (verbatim)
Treaty override, indirect holdings	Where a treaty with the seller's residence state gives Cyprus the taxing right only if at least 50% of the share value comes from Cyprus property, the treaty prevails and no CGT is charged	"η οποία αποδίδει δικαίωμα φορολόγησης στην Κύπρο μόνο στην περίπτωση που τουλάχιστο το 50% της αξίας των μετοχών προέρχεται"

Section 5: Cyprus Tax Residency

Non-dom status matters only for a Cyprus tax resident: a non-resident is outside SDC anyway (Section 3). Residence is set by article 2 of the Income Tax Law N.118(I)/2002 and is tested for each tax year. An individual is resident under EITHER the 183-day rule OR the 60-day rule.

Source	all figures below	https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/
Item	Rule	Note (verbatim)
183-day rule	Resident if in Cyprus for MORE THAN 183 days in total in the tax year, in one or more periods	"they stay in Cyprus for one or more periods exceeding 183 days in total during a tax year"
Day counting	Arrival day counts as in Cyprus; departure day counts as outside; arrival and departure on the same day count as in Cyprus; departure and arrival on the same day count as outside	"The day of arrival is counted as a day in Cyprus. The day of departure is counted as a day outside Cyprus."
60-day rule, condition 1	AT LEAST 60 days in Cyprus in the tax year	"They remain in Cyprus for at least 60 days during the tax year"
60-day rule, condition 2	Not more than 183 days in the year in any other country	"They do not reside for more than 183 days during the year in another country"
60-day rule, condition 3	Carries on business in Cyprus and/or is employed in Cyprus, as employee and/or office holder	"They carry on any business in Cyprus and/or are employed in Cyprus, whether as an employee and/or office holder"
60-day rule, condition 4	Keeps a permanent residence in Cyprus, owned or rented	"They maintain a permanent residence in Cyprus which they own or rent"
60-day rule, all four needed	ALL conditions must be met	"provided that they meet all of the following conditions"
60-day rule, losing it in the year	If the Cyprus business stops or the Cyprus employment ends during the year, the person is not resident under this rule for that year	"the individual ceases to be considered a Cyprus tax resident for that year"

Source	all figures below	https://www.gov.cy/media/sites/167/2026/03/2026-%CE%A6%CE%BF%CF%81%CE%9C%CE%B5%CF%84%CE%B1%CF%81%CF%81%CF%8D%CE%B8%CE%BC%CE%B9%CF%83%CE%B7-%CE%A6%CF%8C%CF%81%CE%BF%CF%82-%CE%95%CE%B9%CF%83%CE%BF%CE%B4%CE%AE%CE%BC%CE%B1%CF%84%CE%BF%CF%82.pdf
Item	Rule	Note (verbatim)
Tax residence in another state, 60-day rule	From tax year 2026 no longer a condition: the person may be tax resident elsewhere; the other 60-day conditions still apply	"Στη βάση του κανόνα των «60 ημερών», ανεξάρτητα αν είναι ή όχι φορολογικός κάτοικος άλλου κράτους (οι υπόλοιπες προϋποθέσεις του κανόνα των 60 ημερών εξακολουθούν να ισχύουν)"

A Tax Residency Certificate is applied for separately; the residency page links to the procedure.

Section 6: Income Tax Rates (Cyprus Resident)

The income tax scale has no domicile condition, so a resident non-dom is charged on the same scale as any other individual. The scale applies to chargeable income from tax year 2026:

Source	all figures below	https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf
Chargeable income	Rate	Note (verbatim)
EUR 0 to EUR 22,000	0%	"0% από €0 μέχρι €22.000"
EUR 22,001 to EUR 32,000	20%	"20% από €22.001 μέχρι €32.000"
EUR 32,001 to EUR 42,000	25%	"25% από €32.001 μέχρι €42.000"
EUR 42,001 to EUR 72,000	30%	"30% από €42.001 μέχρι €72.000"
EUR 72,001 and above	35%	"35% από €72.001 και άνω"

New-resident income tax exemptions (domicile does not matter)

These are income tax exemptions, separate from non-dom status. Each has its own conditions; a person meets one or none, and the start date of the employment decides which can apply. Full treatment is in cyprus-income-tax.

Source	all figures below	https://www.gov.cy/media/sites/167/2026/06/Article-8-21B-of-the-Income-Tax-Law-N.118-I-2002.pdf
Item	Rule	Note (verbatim)
Article 8(21B), rate	25% of remuneration from employment exercised in Cyprus, OR of profits from business carried out in Cyprus	"can claim an income tax exemption of 25% on- a. his/her remuneration from any employment exercised in Cyprus"
Earnings test	Gross earnings must exceed EUR 30,000 in the relevant year, and the remuneration or profits must exceed EUR 30,000 in the first 12 months	"has gross earnings exceeding €30.000 in the relevant year"
Cap	EUR 25,000 a tax year	"The exemption cannot exceed €25.000 in a tax year"
Who (all conditions together)	(a) not Cyprus tax resident in the 7 years before the year the work started (2019 to 2025); AND (b) Cyprus tax resident in some year before those 7; AND (c) the first-12-months earnings test; AND (d) started employment or self-employment between 1/1/2025 and 31/12/2030; AND (e) at the start, EITHER a recognised university degree plus at least 36 months full-time employment abroad with a foreign employer in the 84 months before, OR at least 84 months full-time employment abroad with a foreign employer	"The individual must cumulatively satisfy the following conditions"
Period	7 consecutive tax years from the year work started (inclusive), only in years where Cyprus earnings exceed the test and the person is Cyprus tax resident (the start year excepted)	"for a period of seven (7) consecutive tax years"

The 8(21B) exemption is for returning former residents: condition (b) means a person who was never Cyprus tax resident cannot use it.

Source	all figures below	https://www.gov.cy/media/sites/167/2026/06/%CE%A0%CE%AF%CE%BD%CE%B1%CE%BA%CE%B1%CF%82-%CE%B1%CF%80%CE%B1%CE%BB%CE%BB%CE%B1%CE%B3%CF%8E%CE%BD-823-%CE%BA%CE%B1%CE%B9-823%CE%91.pdf
Item	Rule	Note (verbatim)
Articles 8(23) and 8(23A), rate	50% of remuneration from employment in Cyprus	"50% απαλλαγή της αμοιβής από"
Minimum remuneration, 8(23) (table rows ticked for employment started 01.01.2012 to 31.12.2021 and 01.01.2022 to 25.07.2022)	More than EUR 100,000; exemption for 10 years	"Ελάχιστη αμοιβή > €100.000 > €55.000 > €55.000"
Minimum remuneration, 8(23A) (employment from 1 January 2022)	More than EUR 55,000; exemption for 17 years (for the first-employment limb, or until that first employment ends if earlier)	"Περίοδος απαλλαγής 10 έτη 17 έτη"
Look-back, 8(23A)	Not Cyprus tax resident for at least 10 years before the year the first employment started; at least 15 years for the limb that treats employment after 15 years' absence as first employment	"Τουλάχιστο 10 έτη πριν το έτος έναρξης της"
Residence after starting	Granted whether or not the person then becomes Cyprus tax resident	"Όλες οι πιο πάνω απαλλαγές παραχωρούνται ανεξάρτητα αν το άτομο μετά την έναρξη της εργοδότησής του στη Δημοκρατία γίνεται φορολογικός κάτοικος"

Source	all figures below	https://www.gov.cy/media/sites/167/2026/01/implementation-of-sections-21-and-21A-of-article-8-24072023.pdf
Item	Rule	Note (verbatim)
Articles 8(21) and 8(21A), rate	20% of remuneration; 8(21A) covers the first employment in Cyprus started between 26/7/2022 and 31/12/2027 by a person employed outside Cyprus by a non-resident employer for the 3 consecutive years before; no minimum pay; 7 years from the year after employment starts, or until the first employment ends if earlier	"20% exemption of the remuneration from the first"

Source	all figures below	https://www.gov.cy/media/sites/167/2026/02/IR59_2026_English__.pdf
Item	Rule	Note (verbatim)
20% exemption cap	EUR 8,550 a tax year	"20% of your emoluments from any employment with a maximum of €8.550"

The method, step by step

1. Fix the tax year. Cyprus uses the calendar year. Every test below is run for one year at a time. Figures are for tax year 2026 (Income Tax Law N.118(I)/2002, article 2; https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/).
2. Test tax residence for the year: the 183-day rule, else all four conditions of the 60-day rule (Section 5 table; https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/). Not resident means no SDC on interest or dividends; stop the SDC analysis there.
3. Find the domicile of origin (normally the father's at birth). If it is Cypriot, check the two exceptions: domicile of choice abroad AND at least 20 consecutive non-resident years before the tax year, or more than 20 consecutive years abroad before 16 July 2015 (Section 2 table; https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/).
4. Whatever the domicile of origin, count Cyprus tax residence years in the 20 years before the tax year. At least 17 means deemed domiciled, kept until 20 non-resident years are completed (Section 2 table; https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/).
5. If not domiciled: no SDC on interest or dividends. Apply for exemption on Form T.D.38. The same page lists the related forms: T.D.624/NP (declaration for exemption from the deduction of SDC), T.D038QA (domicile of origin questionnaire) and T.D038QB (domicile of choice questionnaire) (https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/).
6. If deemed domiciled only through the 17-of-20 rule and the domicile of origin is not Cypriot: weigh the Article 3D lump sum. Apply on Form TD 631 through TFA by 30 June of the first year of the five-year period, with the required documents, and pay within the deadline (Section 3A tables; https://www.gov.cy/media/sites/167/2026/06/Application-Extension-of-Non-Dom.pdf).
7. If domiciled and resident: charge SDC at the domiciled rates, splitting dividends by the profit year they come from (Section 3 table; https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf). No SDC on rent from 2026.
8. Separately, compute income tax on the 2026 scale and check the new-resident exemptions; domicile does not affect either (Section 6 tables; https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf). Route the income tax return to cyprus-income-tax.

Ask the client first

• In which country were you born, and what was your father's domicile at your birth? Have you ever had a Cypriot domicile of origin?
• For each of the last 20 tax years, were you Cyprus tax resident under the 183-day or the 60-day rule? (This decides deemed domicile.)
• This year: how many days in Cyprus, how many days in any other single country, do you have Cyprus work or business, and do you own or rent a home in Cyprus?
• Do you receive dividends, and from which companies and which profit years? Do you receive interest, and from what kind of instrument?
• Have you already filed Form T.D.38 or received a Tax Department certificate that you are not domiciled?
• When did your Cyprus employment or business start, were you ever Cyprus tax resident before, and what did you earn in the first 12 months? (This decides the new-resident exemptions.)

When to refuse or refer

• Refer any client with a Cypriot domicile of origin who claims non-dom status under either exception. The Wills and Succession Law tests for a domicile of choice are fact-heavy, and the page sends them there.
• Refer a foreigner who says they have formed a domicile of choice in Cyprus. The page does not address it.
• Refer anyone at or near 17 resident years out of 20, or a former deemed-domiciled person returning within 20 non-resident years. Counting errors here change SDC for every later year.
• Refer the Article 3D decision. The election is irrevocable, the payment is never refunded, and the break-even depends on the client's future income.
• Refer dividends from foreign companies paid out of pre-2026 profits to a domiciled resident. The 2026 presentation states the 17% transitional rate for dividends from Cyprus-resident companies; it does not settle foreign-company dividends.
• Do not compute General Healthcare System (GHS/GESY) contributions here. They are a separate charge; see cyprus-social-contributions.
• Refer CGT computations (indexation, the agricultural-land and main-residence exemptions). The rate and the general exemption are in the Section 4 table.
• Refer treaty residence ties (a person resident in two countries). This Guide applies Cyprus domestic rules only.

Sources

• Tax Department, Tax Residency/Domicility: https://www.gov.cy/mof-tax/en/documents/tax-residency-domicility/
• Tax Department, Form TD 631, Application for the Alternative Method of Imposing the Special Contribution for the Defence: https://www.gov.cy/media/sites/167/2026/06/Application-Extension-of-Non-Dom.pdf
• Tax Department, presentation on the SDC and CGT amendments 2026 (Greek): https://www.gov.cy/media/sites/167/2026/03/EEA-%CE%A6%CE%9A%CE%9A-%CE%9C%CE%95%CE%A4%CE%91%CE%A1%CE%A1%CE%A5%CE%98%CE%9C%CE%99%CE%A3%CE%97-06032026.pdf
• Tax Department, Tax Reform 2026 FAQs (Greek): https://www.gov.cy/media/sites/167/2026/05/FAQs-110526.pdf
• Tax Department, Article 8(21B) of the Income Tax Law: https://www.gov.cy/media/sites/167/2026/06/Article-8-21B-of-the-Income-Tax-Law-N.118-I-2002.pdf
• Tax Department, table for articles 8(23) and 8(23A) (Greek): https://www.gov.cy/media/sites/167/2026/06/%CE%A0%CE%AF%CE%BD%CE%B1%CE%BA%CE%B1%CF%82-%CE%B1%CF%80%CE%B1%CE%BB%CE%BB%CE%B1%CE%B3%CF%8E%CE%BD-823-%CE%BA%CE%B1%CE%B9-823%CE%91.pdf
• Tax Department, table for articles 8(21) and 8(21A): https://www.gov.cy/media/sites/167/2026/01/implementation-of-sections-21-and-21A-of-article-8-24072023.pdf
• Tax Department, TD59A 2026 instructions (English): https://www.gov.cy/media/sites/167/2026/02/IR59_2026_English__.pdf

Working paper only. Domicile determination is fact-specific. The 17-of-20-years test requires careful counting of years of Cyprus residence. Obtain formal confirmation from a Cyprus tax adviser.