by Andria Papageorgiou

Company Law, Corporate, Family Office, Immigration Law, NewsJune 27, 20240 comments

UK Non-Dom Regime Facing Uncertainty: Exploring the Cyprus Alternative

The future of the widely utilized UK non-domicile (“non-dom”) regime is currently uncertain. There is a strong possibility that this regime may soon be abolished or undergo significant modifications, particularly concerning the duration for which it will remain applicable. Much hinges on the outcome of the upcoming UK elections, with the Labour and Conservative parties offering little clarity in their manifestos, thereby increasing the unpredictability surrounding this issue.

As a result, current UK non-doms and other international individuals looking to relocate their tax residency are actively seeking alternatives that can satisfy their personal, business, and financial needs efficiently. This is where Cyprus presents a compelling alternative.

The Cyprus Non-Dom Regime: A Prime Alternative

Cyprus has emerged as a preferred destination for individuals from both EU and non-EU countries, whether for long-term relocation or short-term solutions. This is largely due to its attractive non-dom tax regime, which automatically applies to foreign persons who become tax residents in Cyprus. This regime offers significant benefits for up to 17 years.

There has been a notable increase in the number of foreigners opting to become Cyprus non-dom tax residents, leveraging the island’s favorable conditions to manage their international and local business affairs. Cyprus offers a balanced mix of tax and non-tax advantages, making it an appealing option.

Key Benefits of Cyprus Non-Dom Status

Non-dom residents in Cyprus enjoy specific exemptions from Cyprus taxation on dividends and interest, regardless of the source country or whether the funds are remitted to Cyprus. Additionally, there is a complete tax exemption on gains from the sale of shares and other qualifying titles, as well as from capital gains unrelated to immovable property situated in Cyprus.

These exemptions are particularly advantageous for high-net-worth individuals, whose income often primarily comes from dividends, interest, and capital gains.

Foreign individuals can become Cyprus tax residents through the standard 183-day rule or the recently introduced 60-day rule, subject to certain conditions.

Comprehensive Benefits Beyond Taxation

Apart from tax benefits, Cyprus offers a wide array of attractive elements for both individuals and companies. The island excels in providing a high quality of life, featuring a convenient geographical location, a pleasant Mediterranean climate, numerous blue flag beaches, a low crime rate, modern infrastructure, and high-end properties. The availability of international schools, advanced medical care facilities, and a vibrant cosmopolitan lifestyle further enhance Cyprus’s appeal as an ideal place to work, live, and raise a family.

How our Law Firm Can Assist

Our Law Firm offers a comprehensive range of services to facilitate your transition to Cyprus, including:

• All aspects of Corporate procedures
• Assistance with Immigration matters
• Registration with Cyprus tax authorities
• Establishment and administration of Cyprus companies
• Provision of professional director services
• Company domiciliation
• Assistance with Permanent Residency Permits and Work Permits
• Opening of bank accounts
• Accounting and bookkeeping services
• Handling property and real estate matters
• Provision of Family Office services

Cyprus stands as a viable and attractive alternative for those considering relocating from the UK non-dom regime, offering robust benefits and a high quality of life. Contact us today to learn how we can support your transition to Cyprus.

For any professional assisstance, please do not hesitate to contact us at [email protected].

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.