UK to abolish Non-Dom Regime – now is the time to look at Cyprus

UK to abolish Non-Dom Regime

As was largely anticipated, the UK will abolish its’ nom-dom tax regime from April 2025 and introduce a new “residence-based scheme with internationally competitive arrangements for people coming to the UK on a temporary basis”.

With this in mind non-doms in the UK as well as other foreigners wishing to transfer their tax residence to another country are looking for an option or alternative that can meet their personal, professional and financial needs in a practical and efficient way.

Time to take a look at Cyprus’ Non-Dom regime

Cyprus offers an alternative with its own non-dom status.

Cyprus is an excellent choice for such people (both EU and non-EU), either as a long-term or short-term solution. This is mainly due to the non-dom status, which is automatically applied to foreigners who become tax residents in Cyprus. In any case, the non-dom status is valid for a maximum period of 17 years.

It is worth noting that non-dom tax residents of Cyprus are expressly exempted from Cypriot taxation on dividends and interest, regardless of the country of origin and whether the funds are transferred to Cyprus or not. In addition, there is full tax exemption on all profits from the sale of shares and other investment products that constitute “securities”, as well as on capital gains not related to immovable property located in Cyprus.

These tax breaks are of particular interest to high net worth individuals, as the majority of their income usually comes from dividends, interest and capital gains.

Foreign investors can become tax residents of Cyprus either through the usual 183-day rule, or through the alternative 60-day rule, which is subject to certain conditions.

Other attractive tax incentives offered by Cyprus

Cyprus also  offers many other attractive tax incentives for both individuals and companies.

The quality of life and infrastructure offered are equally important. The geographical location, pleasant Mediterranean climate, blue flag beaches, low crime rate, modern facilities, luxury real estate, English speaking private schools and universities, advanced medical services as well as cosmopolitan life, make Cyprus an excellent choice to work, live and raise a family.

How can we help

• Immigration Issues
• Registration with the tax authorities of Cyprus
• All current tax liabilities
• Establishment and management of a Cypriot company
• Establishment of a Cyprus International Trust
• Professional management and fiduciary services
• Relocation of companies
• Permanent residence and work permits
• Opening bank accounts
• Accounting / auditing services
• Real estate matters

In conclusion, the uncertainty surrounding non-dom status in the UK has highlighted Cyprus as an attractive alternative. With significant tax exemptions and a high quality of life, Cyprus offers a complete package to work, live and raise a family.

Should you require any assistance with this process, please do not hesitate to contact us at consult@cosmoserve.com  or +357 22379210