Question 1

What is the Cyprus Non-Dom 27-year extension?

Accepted Answer

Cyprus's 2026 tax reform allows Non-Dom Cyprus tax residents to extend the standard 17-year Non-Dom SDC exemption by paying €250,000 at year 18 (extending to year 22) and a further €250,000 at year 23 (extending to year 27). Total cumulative cost: €500,000 for the full 10-year extension.

Question 2

Who benefits from the Non-Dom extension?

Accepted Answer

Cyprus-domiciled residents with substantial passive income (dividends, non-trading interest) benefit if their 5-year SDC liability exceeds €250,000. At the post-2026 5% SDC rate, this means roughly €1,000,000+ of annual passive income with no growth, lower with growth assumed. Below this threshold, the extension fee outweighs the saving.

Question 3

Is the €250,000 fee a one-time payment or annual?

Accepted Answer

Each fee is a one-time payment. €250,000 secures years 18–22 (5 years of continued SDC exemption). A separate €250,000 at year 23 secures years 23–27. The fees are not refundable if you leave Cyprus residency early.

Question 4

What happens after year 27?

Accepted Answer

After year 27 the individual becomes deemed-domiciled and the post-2026 5% SDC rate applies on dividends and non-trading interest going forward. The 27-year framework is the practical maximum for Non-Dom planning under current law.

Question 5

Can a Cyprus Non-Dom take only the first €250k extension?

Accepted Answer

Yes. The two extensions are independent decisions. Pay €250,000 at year 18 to secure years 18–22. At year 23 you can choose whether to pay the second €250,000 for years 23–27, or accept deemed-domicile status. Many HNWIs evaluate the second decision based on portfolio composition at year 22.

Cyprus Non-Dom 17 → 27-Year Extension Break-Even

Your passive-income profile

Years 18–22 extension (€250,000)

Years 23–27 extension (€250,000)

Plan years 17–27 with senior advisers