Dividends and Taxes with Non-Dom Status
How Cyprus Treats Dividend Income
In Cyprus, you usually pay no tax on dividends while you hold Non-Dom Status. Since 1 June 2019, you pay into the national health system (GHS, also called GESY) instead. This contribution is 2.65 percent of your income, up to a yearly income of EUR 180,000.
A dividend is simply your share of a company's profit. The company pays it out to its owners or shareholders.
You can usually receive dividends free of Cyprus tax if both of these are true:
- Your personal tax residence is in the Republic of Cyprus (EU).
- You hold Cyprus Non-Dom Status.
This applies to dividends from Cyprus and from abroad (under Cyprus national tax law, as at January 2026).
What This Means in Practice
As an owner or shareholder, you have a right to a share of the company's profit. This share is the dividend. Normally, you would pay income tax on it. But under the Non-Dom Regime in Cyprus, you usually receive your dividends tax free. It does not matter where the company is registered. It can be in Cyprus or in another country.
Enjoying Non-Dom Privileges, you may also hold shares in companies abroad and use international bank accounts.
Do you want to run an international business from your new home in Cyprus? Cyprus provides it all - international VAT number, a place of business, European IBANs and EU membership.
How Long Does Non-Dom Status Last?
Cyprus Non-Dom Status lasts for a first period of 17 years. The count starts from the year you become tax-resident in Cyprus. Under the 2026 tax reform, you may also extend the status beyond these 17 years.
The exact terms for an extension depend on your own situation. The options are best talked through one by one.
Receiving Dividends in Cyprus
You can have as many personal bank accounts as you like and maintain them anywhere you choose. But the experience of the last few years has shown one thing quite clearly: a personal bank account in Cyprus makes life easier. It is easier to handle the local tax office and you get less follow up questions.
Keep dividends in different personal accounts to spread risks and to be covered by a deposit insurance.
Declaring Incoming Dividends to the Cyprus Tax Authority
It is best to declare dividend income to the tax office before the dividend is paid out. If that is not possible, declare it right after. Two points matter most here:
- The transfer reference should clearly show that the payment is a dividend.
- Send us a short note before each dividend transfer.
On request, we can provide a template. It covers both the wording for the transfer reference and the note to us about an upcoming dividend.
We then submit your dividend note to the Cyprus tax authorities on your behalf. At the same time, we add it to your personal records.
Opening A Cyprus Bank Account
For more information on opening a bank account in Cyprus, please visit our Cyprus Bank Account page.
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