Did the UK abolish the non-dom regime?

Yes. The UK abolished its resident non-domicile regime effective April 2025. Cyprus's non-dom regime with 0% SDC on dividends for up to 17 years remains fully available for qualifying individuals who establish Cyprus tax residency.

How quickly can I establish Cyprus tax residency?

Using the 60-day rule, you can qualify within the same tax year. The full process — company setup, property rental, TIC registration, and non-dom application — typically takes 3–6 months end to end.

Is there a Cyprus-UK double tax treaty?

Yes. The Cyprus-UK DTT prevents double taxation on income earned in one country by a resident of the other. It covers dividends, interest, royalties, employment income, and capital gains.

🇬🇧0% SDC on dividends for 17 years

Relocating from United Kingdom to Cyprus

If you're a UK founder facing life after non-dom abolition, you're not alone — and Cyprus offers a concrete, EU-compliant alternative.

Since April 2025, the UK's non-dom regime is gone. Cyprus still has it. Here's how UK entrepreneurs are making the move.

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Your Situation

Why United Kingdom entrepreneurs are considering a move

Non-Dom Abolition (April 2025)

The UK scrapped its resident non-domicile regime, exposing formerly sheltered foreign income and gains to UK worldwide taxation. The 4-year FIG exemption for new arrivals is a limited transitional measure — not a replacement.

Capital Gains Tax Rising to 24%

From April 2025, UK CGT on asset disposals has increased. For founders planning a share sale, the timing cost of remaining in the UK versus relocating to Cyprus (0% CGT on shares) can run into seven figures.

Dividend Tax Up to 39.35%

With the UK dividend allowance effectively eliminated and top rates hitting 39.35%, extracting profits from a UK company is expensive. Cyprus non-dom shareholders pay 0% SDC plus 2.65% GeSY — dramatically lower.

HMRC Exit Procedures

UK statutory residence test rules must be carefully navigated. Split-year treatment, the 90-day tie, and HMRC form P85 are all part of a clean exit. Getting residence termination wrong can leave you dual-resident.

What Cyprus Offers You

Five reasons United Kingdom founders choose Cyprus

Non-dom status: 0% SDC on dividends and interest for up to 17 years
0% capital gains tax on disposal of shares and securities
Cyprus-UK double tax treaty prevents dual taxation on UK-source income
15% corporate tax rate vs UK's 25% main rate
EU residency, SEPA banking, and English as an official language

Relocation Timeline

From decision to first day as a Cyprus tax resident

Decision & structuring reviewWeek 1–2

UK exit tax analysis, CGT timing, share sale planning, HMRC P85 preparation.

Cyprus company incorporationWeek 3–8

Cyprus LTD formed, bank account opened, registered office established.

Relocate and spend 60+ daysMonth 2–4

Rent or purchase Cyprus property, register with tax authority, apply for non-dom status.

First day of Cyprus tax residencyMonth 4–6

TIC (Tax Identification Code) issued, non-dom certificate received, UK residency formally ceased.

Frequently Asked Questions

United Kingdom-specific questions

Do I need to sell my UK company before moving?

No. A Cyprus holding company can acquire or hold shares in your UK operating company. You can continue operating the UK business while receiving dividends into the Cyprus structure taxed at non-dom rates. Proper substance and control-of-management rules must be observed.

What is the 60-day rule and can I use it?

The Cyprus 60-day rule lets you qualify for Cyprus tax residency by spending at least 60 days in Cyprus, maintaining a home there, and holding a directorship or employment in a Cyprus entity. The 2026 reform removed the old requirement to be non-resident elsewhere — making it more flexible for UK founders who retain property in the UK.

Will HMRC challenge my move to Cyprus?

HMRC will scrutinise your departure if you retain strong UK ties: family remaining, UK property available for use, and more than 90 days in the UK. A clean residence cut-off — with a confirmed break from UK ties — is essential. We recommend a formal UK exit tax review before you leave.

Does Cyprus tax UK-source rental income?

Under the Cyprus-UK DTT, UK-source rental income is generally taxable in the UK. However, as a Cyprus tax resident, you may credit UK tax paid against Cyprus liability. Non-dom status only shields foreign passive income from SDC — it does not exempt you from Cyprus income tax, but the rate is progressive and relatively moderate.

Relevant Guide

UK Founders Post-Non-Dom Relocation Checklist

Step-by-step checklist for UK founders navigating life after non-dom abolition — covering HMRC exit procedures, CGT timing, and Cyprus setup.

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Legal Disclaimer: This page is for general informational purposes only and does not constitute legal or tax advice. Tax laws change frequently. Always seek independent professional advice tailored to your specific circumstances before making relocation or tax planning decisions.