This is a positive development, as the Circular issued by the Tax Department provides practical guidance on the application of this alternative method of taxation for SDC, for the extension of the non-dom status of eligible taxpayers. The Circular clarifies the eligibility criteria, application procedure and relevant deadlines for eligible individuals wishing to extend their non-dom status in Cyprus.
It is important to note that an extensive range of practical examples are also included in the Circular, covering all key aspects of the regime and illustrating its application across a wide range of scenarios.
Moreover, the Circular provides key considerations for eligible individuals who may benefit from this regime, enabling them to make an informed decision on whether to enroll in the regime and to understand the procedures that are required to be followed.
Given the submission deadline for enrollment in this regime, for taxpayers who became deemed domiciled in Cyprus in 2024, 2025 and 2026, is 30 June 2026, eligible individuals wishing to benefit from this alternative method of taxation could proceed with the submission of their application to the Tax Department as soon as possible.
Individuals electing to extend their non-dom status as per the provisions of this regime, will be required to pay an upfront lump sum of EUR 250,000, for each five-year period. It is important to note that this election is irrevocable and under no circumstances will the Tax Department refund the EUR 250,000 lump-sum payment.
If assignees and/or their programme managers are considering or are already implementing global mobility or workforce arrangements involving Cyprus, they might wish to consider the potential implications of these changes on individual tax positions, and internal policies, and seek professional advice as appropriate (see the Contacts section).
