Tax amendments for non-domiciled Cyprus individuals

After the amendments made in 2015 the payment of Special Contribution for Defence on income for non-domiciled Cyprus individuals was terminated. Non-domiciled Cyprus individuals are exempt from the SCD contributions on rental income, interest and dividends. This is applicable even if the individuals are Cyprus tax residents. This is applicable regardless of the origin of the relevant income and regardless of whether the revenue was generated in Cyprus.

The procedure for Cyprus tax residents that want to claim non-domicile status are:

  • Submittal of forms T.D.38 (2016) and T.D.38QA (2017) to the Returns Administration section at the local Tax Department.
  • Applicants who have a domicile of origin in Cyprus and have been tax residents during 1995 to 2014 are required to additionally submit form T.D.38QB (2017). All three forms should be submitted every three years for these specific applicants.
  • The forms should be submitted in the first year the applicant acquires the aforementioned income for which he claims exemption from the SCD.
  • The forms are a declaration regarding the status of the applicant as non-domiciled.
  • Individuals that previously obtained a tax ruling regarding their domicile status must also submit the above forms and attach the related ruling.