Introduction
In an effort to improve the competitiveness of Cyprus's tax
regime and attract foreign capital, in 2015 the Cypriot Government
introduced the concept of "Non-Domiciled". The concept
was proposed through the amendment of the Special Contribution for
the Defence of the Republic of Cyprus Law N.117(I) of 2002, as
amended from time to time (the "SDC Law"). The SDC Law
essentially draws a distinction between tax residents of Cyprus who
are domiciled in Cyprus and those who are not.
The "non-domiciled" rule allows such individuals to
benefit from certain exemptions to existing tax liabilities
regardless of whether they are tax residents of Cyprus. This
amendment to the island's tax framework, has elevated Cyprus to
one of the most attractive European countries for thousands of both
EU and Non-EU investors in selecting their business and/or
residential destination.
