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ARTICLE · 02 MAY 2017

Special Defence Contribution: Non-Domiciled Individuals Exempt!

Michael Kyprianou & Co. LLC
Michael Kyprianou & Co. LLC
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As part of the policy of the Cypriot government to promote the economy of the state, by means of creating attractive and competitive conditions for foreign investors...

CyprusTax
Michael Kyprianou & Co LLC
Michael Kyprianou & Co LLC
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As part of the policy of the Cypriot government to promote the economy of the state, by means of creating attractive and competitive conditions for foreign investors, certain significant changes have recently taken place in the tax regime of the Republic that worth our attention.

The state of the law before the recent amendments, as described in Article 3 of the Special Defence Contribution Law 117(I)/2002 (hereinafter the "Law"), was that any individual residing in Cyprus for at least 183 days a year, i.e. a tax resident for the purposes of Article 3 of the Income Tax Law 118(I)/2002, was obliged to pay a special contribution for the defence of the Republic by means of deducting a percentage from income derived from dividends, interest and rent.

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