The UK Government has released official documentation stating that starting from April 6, 2025, the Non-Dom regime will undergo significant changes:
• The existing regulations for Non-Doms will cease to apply.
• The notion of “domicile” as a determining factor in the UK tax framework will be substituted with a system centred on tax residency.
This shift will profoundly alter how the UK taxes foreign income and capital gains for both current UK-resident Non-Doms and future Non-Doms relocating to the UK.
The way forward? – Cyprus Tax Residency and Non-Domicile status.
Cyprus tax system for individuals offers numerous tax benefits and exemptions, to mention just a few:
- No tax on dividend income
- No tax on gain on disposal of shares
- No wealth tax or inheritance tax
- 50% tax relief on first employment (subject to conditions)
The Non Domice status can be achieved by becoming a Cyprus Tax Resident in few easy steps:
- Presence in Cyprus for more than 183 days in a calendar year OR
- Presence in Cyprus for only 60 days, subject to conditions:
- Presence in Cyprus for 60 days in a calendar year;
- Not to be a tax resident or spent more than 183 days in any other country;
- To have activity in Cyprus – either to be employed by a Cyprus company, have business in Cyprus or hold an office in a Cyprus company.
The team at Axion will be happy to help and take you through the process of the Cyprus Tax Residency.
As a first step we can review your case and check whether you are eligible and whether it is beneficial for you to become a Cyprus Tax Resident.