The new non domiciled rules were introduced to further entice corporate executives and high net worth individuals to take up residency in Cyprus.

The Special Contribution for Defense Law (the SDC Law) has now been amended to incorporate the non-domiciled rules exempting the income (whether actual or deemed) of persons who are not considered to be domiciled in Cyprus from payment of special contribution for defense tax, even if they are considered to be tax residents of Cyprus.

New Non Domiciled Rules

The new non domiciled rules were introduced to further entice corporate executives and high net worth individuals to take up residency in Cyprus.

The Special Contribution for Defense Law (the SDC Law) has now been amended to incorporate the non-domiciled rules exempting the income (whether actual or deemed) of persons who are not considered to be domiciled in Cyprus from payment of special contribution for defense tax, even if they are considered to be tax residents of Cyprus.

Notional Interest Deductions

The House of Representatives introduced a Notional Interest Deduction (NID) regime on corporate equity in an effort to encourage the injection of new equity capital into corporate structures rather than interest bearing and interest free loans (currently entitled to a tax deduction), effectively deleveraging the economy.