0% SDC on dividends for 17 years
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.
— Your Situation
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.
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.
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.
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
— Relocation Timeline
UK exit tax analysis, CGT timing, share sale planning, HMRC P85 preparation.
Cyprus LTD formed, bank account opened, registered office established.
Rent or purchase Cyprus property, register with tax authority, apply for non-dom status.
TIC (Tax Identification Code) issued, non-dom certificate received, UK residency formally ceased.
— Frequently Asked Questions
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.
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.
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.
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
Step-by-step checklist for UK founders navigating life after non-dom abolition — covering HMRC exit procedures, CGT timing, and Cyprus setup.
Read the guide →Services for relocating founders
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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.