Special Defence Contribution, 2026 rules
Cyprus non-dom tax calculator: what is the status worth?
Non-domiciled status removes Special Defence Contribution, not income tax. On €120,000 of dividends from post-2026 profits and €10,000 of interest, a non-dom pays €0 in SDC today and €7,700 a year once the 17-in-20 test makes them deemed domiciled. Enter your own figures below.
Email me this result
We will send you these figures and a link back to them. One email, nothing else unless you tick the box.
What this is based on
- Domicile test. An individual is domiciled in Cyprus for Special Defence Contribution purposes if they have a domicile of origin in Cyprus under the Wills and Succession Law (with certain exceptions), or if they have been a tax resident in Cyprus for at least 17 out of the 20 tax years immediately prior to the tax year of assessment (Ministry of Finance, tax incentives, published 15 January 2026). This calculator models the 17-in-20 limb only. If your domicile of origin is Cypriot, non-dom status is not available to you and the calculator does not apply.
- Dividends. SDC is withheld on dividends received by individuals at 5% from profits earned after 1 January 2026, and at 17% on profits earned before that date (gov.cy). The Tax Department's own worked example pays 17% on a 2027 dividend out of 2025 profits and 5% on a 2027 dividend out of 2026 profits (Tax Department reform presentation).
- Interest. Interest income received by individuals is subject to SDC at 17%. A person with total annual income including interest up to €12,000 is entitled to a refund of SDC withheld on interest in excess of 3%, and certain savings certificates, government and listed corporate bonds carry 3% instead of 17% (gov.cy). Neither the refund nor the 3% category is modelled: enter only ordinary interest.
- Rental income is deliberately absent. SDC on rental income was abolished from 1 January 2026, and rents are now taxed with income tax and a General Healthcare System contribution only (Tax Department FAQs, 11 May 2026). Any calculator still charging SDC on Cyprus rent is out of date.
- General Healthcare System (GESY) contributions are not modelled, and they do not go away with non-dom status. The Tax Department confirms GESY still applies to rental income after SDC was removed, and that corporate tenants continue to withhold it. We could not read the Health Insurance Organisation's published contribution rates and annual income ceiling at source today, so we publish no rate: get the current rate and cap from the Health Insurance Organisation before relying on a net figure.
- Income tax is separate and is not calculated here. Dividends and interest of Cyprus tax residents are exempt from income tax, but everything else is not, and the personal scales changed for 2026: the tax-free band rose from €19,500 to €22,000, with 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above that (businessincyprus.gov.cy).
- Anti-avoidance provisions apply to the domicile rules, and domicile status is retained until the completion of 20 tax years, not necessarily consecutive, in which the individual is not a Cyprus tax resident. Leaving for a few years does not reset the clock.
Cyprus Non-Dom Calculator is an independent information site operated by Ellul Solutions Ltd. It is not affiliated with the Cyprus Tax Department, the Ministry of Finance or the Health Insurance Organisation, and nothing here is tax or legal advice. A relocation decision should rest on advice from a Cyprus tax adviser who has seen your full position, not on a public calculator.
Cyprus Special Defence Contribution by domicile status, 2026 rules
Last updated
What the same investment income costs a non-domiciled Cyprus tax resident and a deemed-domiciled one, at the rates in force from 1 January 2026. The difference is the whole value of non-dom status.
Computed with this calculator's own formulas from rates published by the Cyprus Ministry of Finance and the Tax Department and read at source on 15 August 2026: 5% SDC on dividends from profits earned after 1 January 2026, 17% on dividends from earlier profits, 17% on ordinary interest, and no SDC at all for a Cyprus tax resident who is not domiciled in Cyprus. Deemed domicile assumes 17 or more of the last 20 tax years as a Cyprus tax resident. GESY contributions and income tax are excluded.
| Status | Dividends a year | Interest a year | SDC due | SDC if deemed domiciled |
|---|---|---|---|---|
| Non-domiciled, 5 years resident | €50,000 (post-2026 profits) | €0 | €0 | €2,500 |
| Non-domiciled, 5 years resident | €100,000 (post-2026 profits) | €20,000 | €0 | €8,400 |
| Non-domiciled, 5 years resident | €250,000 (post-2026 profits) | €50,000 | €0 | €21,000 |
| Deemed domiciled, 17 of 20 years | €100,000 (post-2026 profits) | €20,000 | €8,400 | €8,400 |
| Deemed domiciled, 17 of 20 years | €100,000 (pre-2026 profits) | €20,000 | €20,400 | €20,400 |
| Deemed domiciled, 17 of 20 years | €0 | €100,000 | €17,000 | €17,000 |
| Deemed domiciled, 20 years resident | €250,000 (post-2026 profits) | €50,000 | €21,000 | €21,000 |
- A Cyprus tax resident who is not domiciled in Cyprus pays no Special Defence Contribution on dividends or interest, whatever the amount.
- From 1 January 2026 the SDC rate on dividends received by individuals fell from 17% to 5% for profits earned after that date, which cuts the value of Cyprus non-dom status on dividend income by roughly two thirds.
- SDC on interest received by individuals remains 17%, so interest is now the income type where non-dom status is worth most.
Cite this page
“Cyprus Special Defence Contribution by domicile status, 2026 rules”, Cyprus Non-Dom Calculator, https://cyprusnondomcalculator.com/ (updated 2026-08-15). Computed with this calculator's own formulas from rates published by the Cyprus Ministry of Finance and the Tax Department and read at source on 15 August 2026: 5% SDC on dividends from profits earned after 1 January 2026, 17% on dividends from earlier profits, 17% on ordinary interest, and no SDC at all for a Cyprus tax resident who is not domiciled in Cyprus. Deemed domicile assumes 17 or more of the last 20 tax years as a Cyprus tax resident. GESY contributions and income tax are excluded.
Getting a Cyprus tax opinion before you move?
Tell us the shape of your income and we will introduce you to a Cyprus tax adviser who works with relocating individuals.
The questions we get
What is Cyprus non-dom status?
A Cyprus tax resident who is not domiciled in Cyprus falls outside Special Defence Contribution, the tax charged on dividends and interest. It does not exempt you from income tax, capital gains tax, social insurance or General Healthcare System contributions.
When does Cyprus non-dom status end?
When you have been a Cyprus tax resident for at least 17 out of the 20 tax years immediately prior to the tax year of assessment, you are treated as domiciled in Cyprus for Special Defence Contribution purposes.
How much is Special Defence Contribution on dividends in Cyprus?
For individuals, 5% on dividends out of profits earned after 1 January 2026, and 17% on dividends out of profits earned before that date. The rate follows the vintage of the profits, not the date of payment.
How much is Special Defence Contribution on interest?
17% for individuals on ordinary interest. Certain savings certificates and listed government or corporate bonds carry 3% instead, and a person with total annual income including interest up to €12,000 can reclaim the SDC withheld above 3%.
Can I extend Cyprus non-dom status beyond 17 years?
From 1 January 2026, an individual without a Cyprus domicile of origin may elect an alternative method of paying Special Defence Contribution: a flat €50,000 a year for two five-year periods, €250,000 per period. The election is irrevocable, needs the Commissioner's approval, and must be applied for by 30 June of the first year of each period.
Do I have to file a Cyprus tax return if I have no income?
From the 2026 tax year, a Cyprus tax resident who has reached 25 but not 71 by 31 December of the tax year must register and file regardless of income. That is a change from 2025, when the trigger was gross income above €19,500.
Sources
- Ministry of Finance, Tax Incentives (published 15 January 2026)
- Tax Department, Tax Reform 2026
- Tax Department, Special Defence Contribution and capital gains reform presentation (6 March 2026)
- Tax Department, Tax Reform 2026: Income Tax presentation
- Tax Department, individuals FAQs on the 2026 reform (11 May 2026)
- businessincyprus.gov.cy, registering for income tax and VAT
- General Healthcare System (GESY), contributions
Price the status before you price the flights.
SDC saved today, and what it costs when the 17-year clock runs out.
Embed this tool
<script src="https://cyprusnondomcalculator.com/embed.js" async></script>