Category: Residency

Portugal, with its golden beaches, vibrant culture, and attractive climate, has long been a magnet for expats seeking a dream holiday home or a lucrative short-term rental investment. While the allure is undeniable, managing the intricacies of property ownership and rental regulations as a non-resident requires a thorough understanding of the local landscape.

This article summarises essential aspects of owning a holiday home – whether it is only for personal use or for short-term rental.

The Appeal of Portuguese Property

Foreigners enjoy the same rights as Portuguese citizens when buying and owning property in Portugal, with no legal restrictions based on nationality. 

Important Recent Changes to AL Regulations (as of November 2024 onwards):

• Municipal Authority: Municipalities now have greater authority to regulate AL approvals and can define “containment zones” where new AL licenses may be restricted or even prohibited (e.g., parts of Lisbon and Porto city centres). It is crucial to check with the local Câmara Municipal before purchasing a property with the intention of short-term rental.
• License Permanence: AL licenses are now generally permanent and do not expire after five years.
• Transferability: AL registrations and licenses are now transferable.
• Capacity Limits: Maximum capacity for ALs is generally 27 guests.
• Residential Use Restriction: New ALs are prevented from occupying properties that have been rented out for residential purposes during the last two years.
• Conservation and Energy Certificates: AL properties must be officially classified as “medium” or higher for conservation (confirmed by council inspection) and have an energy certificate with an energy efficiency level of D or higher.
• Special Contribution (CEAL): The controversial special contribution to local accommodation (CEAL) has been revoked by the new government (as of May 2024), meaning AL owners are no longer required to pay this.

Reach out to Dixcart Portugal for more information (advice.portugal@dixcart.com).

Note this is not tax advice.

Portugal’s Golden Visa programme has adapted to meet evolving economic priorities, with a significant shift away from direct real estate investment. Today, one of the most prominent and popular pathways to Portuguese residency is through the investment in qualified funds. This route offers a professionally managed, diversified approach to investment while providing a clear path to European residency and potential citizenship.

The Rise of Fund Investments in the Golden Visa Landscape

Following legislative changes, particularly in late 2023, direct real estate purchases and real estate-related funds no longer qualify for the Golden Visa. This redirection has significantly boosted the appeal of investment funds, making them a preferred option for many applicants. These funds are designed to channel capital into productive sectors of the Portuguese economy, aligning with the country’s goals for growth and innovation.

The investment fund route has emerged as a practical and attractive option for individuals seeking Portuguese residency through the Golden Visa programme. By offering professional management, diversification, and a clear path to European benefits, it presents a compelling alternative for those looking to invest in Portugal’s dynamic economy. However, as with any significant financial decision, thorough research and expert guidance is always recommended.

Please contact Dixcart Portugal for more information: advice.portugal@dixcart.com.

Note that the article above is subject to change considering the immigration and nationality laws are under review. Please consult for the most up to date information.

Introduction

Major reforms regarding how new UK tax residents are taxed were introduced in April 2025.The changes have an impact on individuals who have been a tax resident in the UK for 4 years or more.

The Change from the Remittance Basis to the Foreign Income and Gains (FIG) Regime.

The remittance basis of taxation for non-UK domiciled individuals ceased on 5 April 2025 and was replaced with the new Foreign Income and Gains (FIG) regime. While initially more generous due to the initial UK tax exemption on foreign income and gains, the FIG regime is limited to a maximum of 4 years. After this period, individuals become fully taxable in the UK on their worldwide income and gains as they arise. In contrast, the remittance basis provided a tax advantage for up to 15 years. 

UK Tax Residence and the Possibility of “Resetting” the Clock

The FIG regime is based on an individual’s UK  tax residence. Individuals who are likely to be affected by the new rules should review their tax residence position and consider spending less time in the UK in order to cease being UK tax resident. This may allow them to avoid becoming subject to UK taxation on worldwide income or gains, if they wish to do so.

Through appropriate planning, ceasing to be UK tax resident for 10 years can result in the loss of FIG regime status. If individuals then choose  to return to the UK and become tax resident again, the FIG year count will reset.

Additional detail regarding the factors affecting UK resident and non-resident status can be found in the following Dixcart Article: The UK Resident/Non-Resident Test.

Tax Planning Opportunities

Individuals Seeking to Lose their UK Tax Residence

A Planning Example

Mr and Mrs Taxpayer spend between 125 and 140 days per year in the UK and have done so for the past  years (all of which they have been UK tax resident). While they are in the UK, they stay in an apartment they own in London. For the remainder of the year, they primarily live in Spain.

Mrs Taxpayer is a consultant and, while in the UK, spends the equivalent of 1 day per week (i.e. 52 working days per year) providing consultancy services to UK based clients.

UK tax residency considerations will take into account the following factors:

• Mr and Mrs Taxpayer currently spend more than 120 days in the UK per year;
• Each spouse is UK tax resident;
• They have both spent more than 90 days in the UK in the previous 2 tax years;
• They have an apartment available to them while they are in the UK; and
• Mrs Taxpayer works in the UK for more than 40 days per year.

Mr Taxpayer is UK tax resident and has 3 connecting factors. Mrs Taxpayer is UK resident and has 4 connecting factors.

They both recognise that, under the new FIG regime, they will be taxed in the UK on a worldwide basis. This would be a significant cost to them, and they would therefore like to reconsider their UK tax residence position.

However, they would still like to spend time in the UK, particularly Mrs Taxpayer who does not intend to end her UK consulting work.

To cease their UK tax residence, both their day count in the UK and their “connecting factors”, as specified in the UK Resident/Non-Resident Test, will need to be considered.

Question – Is it possible to maintain the same day count?

Answer – If they wish to retain their current UK day count, they would not be able to do so under any of the automatic non-residence tests and so they would both need to remove all connecting factors. However, this is not possible as they have already triggered the connecting factor of more than 90 days in the previous 2 tax years. It is therefore not possible to maintain this day count. 

Question –If all connecting factors are retained, how many days would they need to reduce their day count to?

Answer – Mr Taxpayer would need to reduce his day count to below 91 days. Mrs Taxpayer would need to reduce hers to below 46 days, which would prevent her from working her current number of days in the UK. It is worth noting that if they reduce their day count to this level, after 2 years, they will no longer trigger the “90 day” connecting factor. After 3 years, they will be considered “arrivers”, so additional planning options might be available at this time.

Question – How many days can they spend in the UK each year?

Answer – The connecting factors and their status as “arrivers” or “leavers” will change over the years and therefore each year will need to be considered separately.  If they are not prepared to sell the apartment and/or if Mrs Taxpayer intends to stop working as many days while in the UK (limiting work days to 40); the table below shows the maximum number of days they could spend in the UK while still meeting the requirement to lose UK tax residence for the full 10 year period.

	Year 1	Year 2	Year 3	Year 4	Year 5
Mrs Taxpayer	45	45	90	90	90
Mr Taxpayer	90	90	120	120	120

Question – How would their day count change if Mrs Taxpayer ceased working in the UK?

Answer – This would mean she would lose one of her connecting factors. Their day count would therefore mirror each other’s:

	Year 1	Year 2	Year 3	Year 4	Year 5
Mrs Taxpayer	90	90	120	120	120
Mr Taxpayer	90	90	120	120	120

Question – If Mrs Taxpayer does not want to reduce the number of days she works in the UK, but they sold their apartment and stayed in a hotel while in the UK, would this change their position?

Answer – Yes, if care was taken to ensure that this placed them in a position to avoid the accommodation connecting factor, they would both have lost one of their connecting factors:

	Year 1	Year 2	Year 3	Year 4	Year 5
Mrs Taxpayer	90	90	120	120	120
Mr Taxpayer	120	120	120	182	182

The Positive Effects of Tax Planning

The example of Mr and Mrs Taxpayer illustrates the complexities of the statutory residence test and how, for a married couple, joint planning is crucial. 

It also highlights how a single change (in this example, Mrs Taxpayer not working in the UK, or the apartment being sold) could allow them to become non-UK tax residents without significantly reducing their number of days spent in the UK.

Additional Information

If you require any additional information on this topic, please speak to Paul Webb at the Dixcart office in the UK: advice.uk@dixcart.com or to your usual Dixcart contact.

Background

“Don’t worry, I never spend more than 90 days in the UK”.

This test for UK tax residence was replaced with a statutory residence test, but it is still commonly believed that the above statement is correct.

It is not and, whilst in many cases, the test might result in an individual triggering UK tax residency without expecting it, in many other circumstances, they might have been limiting themselves to the wrong number of days.

For anyone renting or buying property in the UK and starting to spend more and more time in the UK, they should seek advice to be clear what their day pattern in the UK should or can be. This note considers a couple who have not previously been tax resident in the UK.  For more information about correctly losing UK tax residence, please see – Tax Residence Planning Opportunities – Case Studies and How To Get it Right. It also does not consider immigration but more information on how Dixcart can assist with UK Immigration can be found here – Dixcart Immigration.

Case Study

Mr Overseas has lived in Europe his whole life.  Having sold his successful overseas business a number of years ago, he took early retirement. He is not married.

Having retired, he wants to spend more time in the UK as he has nephews and nieces whom he enjoys seeing more of.

He also feels that the UK real estate market might be a good investment, so he purchases an apartment that he lives in when he is here.  It is empty the rest of the time.

Thinking he is doing some clever tax planning, he chooses to limit his days in the UK to 85-89 days, because everyone tells him that if he stays in the UK for fewer than 90 days, he won’t become tax resident. 

Mr O Should Take Some Advice!

The part of the UK statutory resident test (Test) relevant to him is part 3, the Connecting Factors.  In the first year he starts spending time in the UK, he does not have a tax resident family member, he has not exceeded 90 days in the UK in either of the two previous tax years, and he does not work in the UK for more than 40 days each tax year.  He does have available accommodation though, so he has just one Connecting Factor.  In the first year, he could spend up to 182 days in the UK without becoming UK tax resident, double what he had originally thought.

In the second year, he would still have available accommodation but also now would have spent more than 90 days in one of the previous two tax years.  His day limit is now 120 days, still more than the “90 days rule” he had been told about.

Once he discovers this, he starts spending up to 115-119 days in the UK

However – The Rules Need Constant Review

As Mr O is now spending more time in the UK, he meets someone special and gets married.  He also gets bored of early retirement and starts a consulting role for most of the days he is in the UK.

Thinking that he has now taken his UK tax advice about residence, he doesn’t think to check it again.

Mr O now has a tax resident spouse, he works for more than 40 days in the UK, he has spent more than 90 days in the UK in at least one of the last two previous tax years and he still has available accommodation.

His tax circumstances have changed dramatically and, in fact, if he wants to still remain non-resident in the UK, his day count would be capped at 45 days!

There is still planning to do though, as he might be able to claim the remittance basis as a non-domiciled individual. With the 2025 UK tax changes for non-doms and evolving rules around foreign income and gains, it’s important to understand the do’s and don’ts to ensure compliance and make informed decisions.

Summary and Additional Information

Whilst Mr O’s circumstances shifted during the course of this case study, it is interesting to note that at no point in time was Mr O’s day count cap at 90 days, despite the common belief that those are the rules for UK residence.

The remittance basis of taxation, which is available for non-UK domiciled individuals, can be a very attractive and tax efficient position, but it is crucial that it is properly planned for and properly claimed at the right time. 

If you require additional information on this topic, further guidance regarding your possible entitlement to use the UK remittance basis of taxation, and how to properly claim it, please contact your usual Dixcart adviser in the UK office: advice.uk@dixcart.com.

Dixcart UK, is a combined accounting, legal, tax and immigration firm.  We are well placed to provide these services to international groups and families with members in the UK. The combined expertise that we provide, from one building, means that we work efficiently and coordinate a variety of professional advisers, which is key for families and businesses with cross-border activities.

By working as one professional team, the information we obtain from providing one service, can be shared appropriately with other members of the team, so that you do not need to have the same conversation twice!  We are ideally placed to assist in situations as detailed in the case study above. We can provide cost effective individual and company administration services and also offer in-house expertise to provide assistance with more complex legal and tax matters.

An Introduction to Domiciliation

The Cyprus Non-Domicile regime (or non-dom) hinges on a person’s domiciliation. It is important to note that there are two kinds of domicile:

• Domicile of origin: The domicile assigned to an individual at birth.
• Domicile of choice: The domicile acquired by an individual through establishing a physical presence in a particular place, combined with the intention of making it their permanent home.

Individuals who have been tax residents in Cyprus for at least 17 out of the last 20 years will be deemed domiciled in Cyprus. Meaning, once you meet the 17-year limit, you will be considered to have a Cyprus domicile of choice.

Tax Residency

It is also important to note that the Cyprus tax regime only applies to individuals who are tax residents. Anyone looking to take advantage of the benefits under the non-dom regime must first ensure that they are a tax resident of Cyprus. You can find full details in our article on Cyprus Tax Residency.

Application, Cost and Evidence

Unlike other tax regimes around the world, the Cyprus non-dom regime has no participation cost and there is no minimum annual tax bill to be paid. In other words, there is no annual fee payable to the government in order to benefit from the advantages outlined below.

Applicants must complete the specified form and submit it along with evidence that they are tax residents of Cyprus and that their domicile of origin or choice is not Cyprus.

Once your application has been approved, you can request a certificate to confirm your tax residency and status as a non-domiciled individual. This certificate, issued by an EU member state government, can be used when required in other jurisdictions.

Benefits

Before diving into the benefits, it isworth remembering that Cyprus tax residents are taxed on their worldwide income. This means the following advantages apply to income sourced in Cyprus or remitted to Cyprus from abroad. Additionally, there are no wealth and no inheritance taxes in Cyprus, for both ordinary residents and non-doms.

Cyprus’ non-domicile status provides access to a range of highly attractive tax benefits. Individuals who qualify under the regime are exempt from income tax on the following:

• Interest
• Dividends
• Capital gains (excluding immovable property in Cyprus, which may still benefit from partial exemption on newly acquired property)

Non-doms in Cyprus also enjoy significant relief on their salaried income. Those who take up residency in Cyprus for the first time may be eligible for a 50% exemption on their salary from income tax. This is in addition to the standard 0% tax band.

To qualify for this exemption, individuals must meet the following criteria:

• Be a non-domiciled individual
• Be employed in their first job in Cyprus
• Earn an annual salary of €55,000 or more
• Be a “new resident” in Cyprus (meaning they must not have been a resident of Cyprus for a period of at least 15 consecutive tax years immediately prior to the commencement of their employment in Cyprus)

National Health Contribution

It is worth noting that both dividends and salaried income are subject to a General Health System (GHS) contribution of 2.65%, capped on income up to €180,000 per year. This means the maximum contribution is €4,770 annually. This contribution provides access to Cyprus’ excellent and comprehensive public healthcare system.

How Can We Help?

If you would like to know more about the Cyprus Non-Domicle Regime or if you have any questions about how we can help you, please contact us at the Dixcart office in Cyprus for further information: advice.cyprus@dixcart.com.

Our expert team can support you through every step, from immigration matters to tax residency and non-domicile applications. We can assist with compiling your supporting documentation, interpreting the governments forms. We will even attend the immigration office with you and can handle your annual tax return.

If you are planning to take advantage of the corporate benefits here in Cyprus as well by incorporating a company, we also offer a full range of corporate services including, but not limited to, company formation, secretarial support, and accounting services.

We provide end-to-end support at every stage, helping you successfully navigate Cyprus’ tax residency and compliance requirements, so you can make the most of Cyprus’ excellent tax benefits.

Tax Residency vs Legal Residency

Firstly, it is important to understand that tax residency and legal residency are two entirely different things and it is essential not to confuse the two.

In this article, we focus on what it takes to be considered a tax resident in Cyprus, something that has become increasingly popular thanks to several attractive schemes, such as the Cyprus Non-Dom Regime and the Flat Tax Regime For Overseas Pensions . You can find more details on these by clicking the relevant links.

The Two Tax Residency Rules

One of the key advantages of Cyprus’ tax residency system is its simplicity. There are only two rules, and no grey areas. You either meet the criteria or you do not. These are the 183-day rule and the 60-day rule.

183-day rule

This one is as straightforward as it sounds: if you legally reside in Cyprus for at least 183 days in a tax year, you are considered a tax resident, as long as you have evidence to support your stay.

60-day rule

The 60-day rule is one of the most attractive tax residency options in the world because it has such a short stay requirement. It does however come with a few additional conditions. To qualify, you must:

• Legally reside in Cyprus for at least 60 days in the tax year
• Be employed, self-employed, or a director of a company that is tax resident in Cyprus
• Own or rent a residential property in Cyprus for the whole tax year
• Not be tax resident in any other country
• Not spend more than 183 days in total in any one other country

This rule was introduced to attract business owners, consultants, and other mobile professionals who do not necessarily want or need to be based in one location year-round, but still want access to an advantageous, stable, EU-based tax residency.

This option is particularly popular with highly mobile individuals. It allows them to establish tax residency in Cyprus (and obtain a tax residency certificate) while still enjoying the freedom to travel extensively. All while benefiting from Cyprus’ fantastic tax regime.

Tracking Your Days and Proving Your Residency

As you would expect, you will need to prove how many days you have spent in Cyprus. The evidence required can vary depending on your lifestyle — someone living in Cyprus for 300 days a year will need to show different evidence than someone visiting four times a year for 15 days each time.

In addition to other documentation, the most commonly requested evidence includes:

Proof of legal residency:

• Passport or ID card
• Your immigration documentation (often referred to as the “Yellow Slip”)

Proof of days spent:

• Utility bills showing usage during the relevant periods
• Bank statements showing local spending
• For 60-day rule applicants: flight tickets proving entry and exit dates

Tax Residency Certificate

Once you are a Cyprus tax resident, either through the 60-day rule or the 183-day rule, you can request a Tax Residency Certificate. This certificate can be used in other jurisdictions to evidence your tax residency in Cyprus if needed.

How Can We Help?

If you would like to know more about Cyprus tax residency or if you have any questions about how we can help you, please contact us at the Dixcart office in Cyprus for further information: advice.cyprus@dixcart.com.

Our expert team can support you through every step, from immigration matters to tax residency applications and compiling your supporting documentation. We will even handle your annual tax return.

If you are planning to take advantage of the 60-day rule, we also offer a full range of corporate services including, but not limited to, company formation, secretarial support, and accounting services.

We provide end-to-end support at every stage, helping you successfully navigate Cyprus’ tax residency and compliance requirements, so you can make the most of Cyprus’ excellent tax benefits.

The “EU Blue Card” refers to a newly introduced residence permit allowing highly skilled, non-EU nationals to work and live in Cyprus, especially in sectors facing shortage of highly qualified personnel. The Blue Card scheme simplifies the process for qualified individuals to work and reside in the European Union and is valid in all European countries excluding Denmark and Ireland.

The EU Blue Card scheme will enhance the framework for attracting highly qualified professionals, thus enabling Cyprus to further establish itself as a hub for innovation and technology. Unlimited Blue Card positions are available in the Information and Communication Technologies (ICT) sector, pharmaceutical research and maritime industry (excluding ship captains and crew).

Who Qualifies for an EU Blue Card?

In order for a non-EU national to apply for an EU Blue Card, the below must be met:

• A valid employment contract or binding job offer of at least six months in the Republic of Cyprus for a highly skilled employment.
• Higher education qualifications following studies of at least three years, while professionals in the ICT sector must have a minimum of three years’ professional experience within seven years preceding the EU Blue Card application.
• The Cyprus authorities have set a minimum annual gross salary of €43,632. In practice, the law provides that the gross annual salary should not be lower than the set national minimum wage and should be at least equal to the average gross annual salary of Cyprus.
• Valid health insurance coverage.

Application Procedure & Period of Validity

The application procedure is quite simple. The Department of Labour must verify the employment contract and qualifications and then the Blue Card application and required documents must be submitted to the Civil Migration Department.

If approved by the authorities, the Blue Card is issued with a minimum validity of 24 months, with the possibility to apply for a renewal within three months before its expiry as long as certain conditions are met.

EU Blue Card: Key Benefits

• Blue Card holders are granted the right to work in high-demand professions with competitive salaries comparable to those of EU nationals.
• Family members of non-EU nationals have the right to apply for residence in the Republic of Cyprus through the family reunification process and are guaranteed access to any kind of employment, including self-employment, in accordance with Cypriot legislation.
• Blue Card holders enjoy the same working conditions, educational opportunities, social security benefits, and access to services as the host country’s citizens.
• Cardholders can travel visa-free across EU member states and relocate to another EU country for work after 12 months of residence in the issuing country.
• Blue Card holders can apply for long-term residence after 33 months and for citizenship after five years, provided they meet certain conditions such as language proficiency and pension contributions.

These amendments will come into force upon publication in the Official Gazette of Cyprus and once they have been officially adopted, it is expected that the Migration Department will issue further clarifications and guidance notes.

How Can Dixcart Help You?

Dixcart has been assisting its clients with international structing and company incorporation and management for over 50 years. We offer a wealth of in-depth local knowledge and our team at Dixcart Management (Cyprus) Limited have become experts in our field.

We will help you gather and collate all the required documents and assist in ensuring that all required criteria are met dealing with the governing bodies on your behalf to ensure that everything is fully compliant with local and international requirements and regulations.

If you would like to know more about the benefits of applying for an EU Blue Card or if you have any questions about how we can help you please contact us at the Dixcart office in Cyprus for further information: advice.cyprus@dixcart.com

Introduction

If you are considering retiring abroad, there are numerous factors to take into account, ranging from affordability and quality of life to visa requirements and taxation policies.

With over 320 days of sunshine a year, free healthcare, and a variety of visa options with attractive tax benefits, Cyprus has become a top choice for retirees seeking to make the most of their retirement.      

Immigration Options

As a member of the European Union (EU), Cyprus offers the right to live and work in the country for all EU and European Economic Area (EEA) citizens, making relocation straightforward for those from these regions.

For non-EU and non-EEA citizens, commonly referred to as third-country nationals, there are several pathways to residency. The two most popular options are:

1. Establishing a Foreign Interest Company (FIC)
2. Residency by Investment

Please find our detailed article on these routes here.

Other residency pathways are available, though they tend to be less commonly used and may involve a more extended application process. If you are considering moving to Cyprus and feel that neither of the above options suit your circumstances, please feel free to contact our team. We would be happy to explore alternative solutions tailored to your situation.

Tax Benefits

Tax on your foreign pension

Once you become a tax resident in Cyprus, your foreign pension income becomes subject to Cyprus taxation on a worldwide basis (provided it is not an excluded pension, such as a UK Government service pensions).

You have the flexibility to choose between two tax options each year:

Option 1 – 5% tax

This straightforward option taxes all your pension income at a flat rate of 5%, after applying a tax-free allowance of €3,420.

Option 2 – The standard income tax rates

Under this option, your pension income is combined with your other annual income and taxed according to the standard income tax rates, as outlined below:

Chargeable income for the tax year (EUR)	Tax rate (%)
0 – 19,500	0%
19,501 – 28,000	20%
28,001 – 36,300	25%
36,301 – 60,000	30%
60,001 and above	35%

Each individual should assess their situation annually and select the most suitable option, declaring their choice on their tax return.

Pension Lump Sums

Pension commencement lump sums are not taxable in Cyprus, even if received whilst resident in Cyprus. This exemption falls under the domestic ‘exempt income’ rules.

Other Tax Benefits

Non-Domicile Regime:

In addition to the previously mentioned benefits, you may also qualify for the Cyprus Non-Dom regime. This tax regime lasts for 17 years with no buy-in cost. If eligible, you can take advantage of the following benefits:

• 0% income tax on dividends, capital gains, and most types of interest
• 50% exemption on salaried income, provided you meet the criteria

For those with investment income or those receiving dividends from a family business, this regime allows you to receive these amounts free from personal income tax.

For more detailed information about the Non-Dom regime, please refer to our article here.

Inheritance Tax

It is important to note that there is no inheritance tax or gift tax in Cyprus, a benefit available to both Non-Doms and ordinary residents.

Other Notable Advantages

While the tax advantages are significant, they are rarely the sole reason individuals move to Cyprus. Individuals and their families relocate to the island for a variety of reasons, including:

• Cyprus has a very high standard of living and is considered one of the safest countries in Europe.
• The island offers excellent free healthcare, ranked among the highest quality in the world, surpassing countries like Canada and the UK.
• Cyprus is well connected with two international airports providing links to many European destinations and daily flights to hubs such as Dubai, Qatar, and Abu Dhabi.
• The local culture is welcoming and friendly, with a strong emphasis on family-oriented lifestyles.
• Of course, the weather is a significant draw. Cyprus enjoys over 320 days of sunshine per year, with minimal rainfall compared to the rest of the EU. While summers can be very hot, the island experiences all four seasons, and it cools off nicely in the winter. There is even a ski resort on the highest mountain.

How Can Dixcart Help?

At Dixcart, we leverage over 50 years of experience to assist individuals worldwide in finding tailored solutions and executing their plans. For immigration clients, we provide comprehensive support, from gathering required documents for visa/residency permits to guiding you through tax structuring and even accompanying you to immigration offices.

If you are considering moving to Cyprus, reach out to us at advice.cyprus@dixcart.com to see how we can assist you.

Introduction

With over 20% of the population being made up of expats it is clear that Cyprus has become a hotspot for those looking to relocate. There are several benefits drawing people to Cyprus, ranging from a high standard of living and excellent healthcare system to the wide array of taxation benefits and visa options. The 320 sunny days a year also helps convince some.

In this article we will briefly summarise the routes to residency through the two most popular immigration options, as well as outline the key benefits of the Cyprus Non-Domicile (Non-Dom) Regime.

Immigration Options

 EU and EEA citizens

As a member of the European Union (EU), Cyprus offers the right to live and work in the country for all EU and European Economic Area (EEA) citizens, making relocation straightforward for those from these regions.

Non-EU and Non-EEA citizens

For non-EU and non-EEA citizens, commonly referred to as third-country nationals, there are several pathways to residency. The two most popular options are:

1. Establishing a Foreign Interest Company (FIC)

Rights: This route gives you (and your family members) the right to live and work in Cyprus.

Investment requirement: An investment of €200,000 of paid-up capital that can be later used to fund the expenses of the company or used for investments to generate income.

See our full detailed article here if this route to residency interests you.

2. Residency by Investment

Rights: This route gives you the right to live in Cyprus but not the right to work. This means you may not take up any employment in the republic but does not limit you from being the owner and a director on a Cyprus resident company, thus receiving dividends, or working for an overseas entity.

Investment requirement: A local investment of €300,000 is required. This is commonly done through the purchase of a residential property to live in.

See our full detailed article here if this route to residency interests you. Please note there have been some recent changes to the permanent residency regime, we have done a detailed article on these changes here.

3. Other residency options

A number of other options are available, though they tend to be less commonly used and may involve a more extended application process. If you are considering moving to Cyprus and feel that neither of the above options suits your circumstances, please feel free to contact our team. We would be happy to explore alternative solutions tailored to your situation.

Cyprus Non-Domicile Regime

When you become a tax resident in Cyprus you may qualify for the Cyprus Non-Dom regime, provided you or your father were not born in Cyprus. This tax regime lasts for 17 years with no buy-in cost.

If eligible and you complete your application, you can take advantage of the following benefits:

• 0% tax on dividends, capital gains, and most types of interest
• 50% income tax exemption on salaried income, provided you meet the criteria

For those with investment income or receiving dividends from an overseas business, this regime allows you to receive these amounts free from tax.

For more detailed information about the Non-Dom regime, please refer to our full article here.

How Can Dixcart Help

At Dixcart, we leverage over 50 years of experience to assist individuals worldwide in finding tailored solutions and executing their plans. For immigration clients, we provide comprehensive support, from gathering required documents for visa/residency permits to guiding you through tax structuring and even accompanying you to immigration offices.

If you are considering moving to Cyprus, reach out to us at advice.cyprus@dixcart.com to see how we can assist you.