UK non-dom abolished · Cyprus alternative
The UK abolished the remittance-basis non-dom regime in April 2025 (Labour Budget 2024). The four-year FIG (Foreign Income & Gains) replacement is narrower and shorter. Cyprus non-dom gives 0% SDC on dividends/interest/rental for 17 years, 60-day-rule tax residency, and 15% CIT with ~2.5% IP Box. Fully replicable for UK domiciliaries relocating in 2026.
Free 30-min consultation. Reply within 24h.
— WHAT YOU GET
Cyprus non-dom runs for 17 years from your first Cyprus tax-residency year. Compare to UK FIG's 4-year window for new-arrival tax exemption. Over the 17 years, dividend income flows tax-free (0% SDC) — versus the UK's post-April-2025 worldwide-income basis.
Cyprus tax residency available at just 60 days/year (with conditions: no other residency, business/work in Cyprus, permanent home). UK's Statutory Residence Test (SRT) requires complex day-counting and 'ties' analysis. Cyprus is structurally cleaner.
Tax treaty between UK and Cyprus gives 0% withholding on qualifying dividends from UK companies to Cyprus residents. Combined with Cyprus non-dom 0% SDC, the cumulative tax on UK-sourced dividends drops to ~0% for Cyprus-resident shareholders.
Cyprus residency gives you EU work + travel rights. As UK is now a third country, EU mobility is harder for UK residents — Cyprus solves this. Schengen full membership pending (Cyprus is in the EU but not yet Schengen — expected within 2026).
— EVERYTHING INCLUDED
— PROCESS
Free 30-min consultation: we model your exit from UK (CGT, capital-gains-on-departure for shares held >50%), Cyprus arrival timing (split-year vs full-year), pension treatment (UK SIPP transferability).
MEU1 / Yellow Slip filing (~4–6 weeks), Cyprus tax-residency registration, TIN issuance. Yellow Slip is for EU citizens — for UK passport holders post-Brexit, we file Pink Slip (Non-EU Temporary Residence Permit) which is longer (8–12 weeks).
After Yellow/Pink Slip arrives, submit IR.D non-dom form. Demonstrates that your domicile of origin is not Cyprus. Approved typically within 2–3 weeks. From approval onward: 0% SDC applies.
Annual IR1 personal tax return, 60-day stay-tracking, optional Cyprus Ltd HoldCo for UK OpCo holdings. Spouse + minor children registration €300 + €200/child.
We deliver a documented UK-departure file (severing UK tax residency under SRT) plus the Cyprus Yellow/Pink Slip + non-dom declarations. If the Cyprus filings are not approved for any reason within our control, we refund 100% of our professional fee; application disbursements pass through at cost.
— COMMON QUESTIONS
Yes — many UK founders run UK OpCo + Cyprus HoldCo structure. UK Ltd continues to operate. Dividends to Cyprus HoldCo: 0% WHT under UK-CY DTT (qualifying participation). Cyprus HoldCo distributes to you as non-dom resident: 0% SDC. Combined effective: only UK CIT (25%) + Cyprus 0% = 25% on UK profits. Better still: if your UK Ltd holds IP, restructure to Cyprus IP holder → drop to ~2.5%.
UK FIG (post-April-2025): 4 years tax-free on foreign income/gains, then full worldwide basis. Cyprus non-dom: 17 years 0% SDC on dividends/interest/rental, standard income tax on Cyprus-source income. For founders with significant foreign passive income, Cyprus is 4× longer-running and structurally simpler.
UK doesn't have a general exit tax for individuals (unlike France or Spain). But if you have substantial shareholdings (>5% in a UK close company), special rules apply on emigration. We model these case-by-case and time the Cyprus arrival to optimise. Typical UK CGT rate: 20% (higher rate) / 10% (basic rate).
UK SIPPs can be transferred to a Cyprus QROPS / IORP-II registered pension. Transfer is generally tax-neutral if within EEA. Drawdown taxation in Cyprus: 5% flat rate above €3,420/year. Compare to UK 20–45% income tax on drawdown. Cyprus 5% can save tens of thousands annually.
Yes, up to UK Statutory Residence Test limits. Typically: <90 days/year UK presence (varies by ties). The Cyprus 60-day rule allows you to be in Cyprus ≥60 days; the remaining 305 days you can split across UK (within SRT limits) + other countries. Most founders spend 60–90 days Cyprus, 60–90 days UK, rest elsewhere.
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