UK Founders
Cyprus for UK Founders After Non-Dom
The UK abolished its non-domiciled tax regime in April 2025. For founders who relied on remittance-basis taxation, Cyprus now offers a compelling alternative — 15 % CIT, an IP Box that drops the effective rate to ~3 %, Non-Dom status with 0 % SDC on dividends, and a 60-day residency rule that doesn't chain you to the island.
The Trigger
UK Non-Dom Abolished — What Changed
April 2025: End of UK Remittance Basis
- The UK Finance Act 2025 replaced the centuries-old non-dom regime with a new residence-based system.
- From 6 April 2025, all UK tax residents are taxed on their worldwide income regardless of domicile status.
- A 4-year transitional Foreign Income & Gains (FIG) regime applies only to new arrivals — existing non-doms lost their relief.
- UK corporate tax rose to 25% in 2023, making the gap with Cyprus (15%) the widest in recent memory.
- Capital gains, dividends, and overseas rental income are now fully taxable for long-term UK residents.
Why Cyprus
Why UK Founders Choose Cyprus
15% CIT vs 25% UK
Cyprus corporate tax is 15% — a full 10 percentage points below the UK rate. For a company generating £500k profit, that is £50,000 saved annually in headline tax alone.
IP Box ~3% Effective
Software, patents, and other qualifying IP income benefits from the 80% IP Box deduction, bringing the effective rate to approximately 3% — compared to 25% in the UK.
Non-Dom: 0% SDC
Cyprus Non-Dom status exempts you from Special Defence Contribution on dividends, interest, and rental income for 17 years. No equivalent exists in the UK post-April 2025.
60-Day Rule
You can become a Cyprus tax resident by spending only 60 days per year in Cyprus (not 183). Conditions: do not be tax resident elsewhere, maintain a Cyprus home, and operate a Cyprus business.
EU Access & 60+ Treaties
Cyprus is an EU member with 60+ double tax treaties — including a favourable UK-Cyprus treaty. EU Parent-Subsidiary and Interest & Royalties Directives apply.
English-Speaking & Familiar
Common-law legal system, English widely spoken, British-style accounting standards, and a familiar business environment reduce the relocation learning curve for UK founders.
Process
From UK to Cyprus in Three Phases
- 1
Relocate Your Structure
We review your existing UK company, shareholdings, and IP. Where beneficial, we advise on re-domiciliation or forming a new Cyprus entity to hold operations and IP.
- 2
Form Your Cyprus Company
Incorporation via the Registrar of Companies, tax and VAT registration, corporate bank account opening, and — if applicable — IP Box election and advance tax ruling.
- 3
Establish Tax Residency
Apply for Cyprus Non-Dom status, meet the 60-day rule conditions, obtain your Tax Residency Certificate (TRC), and notify HMRC of your departure from the UK tax system.
- 4
Ongoing Compliance
Annual corporate filings (HE32, IR4, VAT), personal tax returns (IR1), day-count monitoring, and coordination with your UK accountant to ensure clean treaty positions.
Ready to Relocate from the UK to Cyprus?
Book a free consultation. We'll model the tax savings specific to your situation, walk you through the 60-day rule, and handle everything from incorporation to your TRC application.