Cyprus dividend tax. 0% for non-doms.
How Cyprus taxes dividends depends entirely on your domicile status. Non-doms pay 0%. Domiciled residents pay 5% SDC on dividends from 2026 profits (17% on older profits received by 31 December 2031).
The short answer
Non-dom Cyprus residents pay 0% Special Defence Contribution on dividends. Domiciled residents pay 5% on dividends from 2026 and later profits, and GHS at 2.65% applies. Dividends are not subject to income tax.
- Non-dom
- 0%
- Domiciled (2026 profits)
- 5%
- Older profits
- 17%
- GHS
- 2.65%
Rates by residency status
Apply for non-dom status to access these rates
Learn about non-dom →How SDC works
The Special Defence Contribution (SDC) is a tax levied on passive income — dividends, interest and rental income — earned by Cyprus tax residents who are also domiciled in Cyprus.
Non-doms are fully exempt. If you are a Cyprus tax resident but not domiciled in Cyprus (under the non-dom regime), SDC does not apply to any of your passive income — regardless of its source.
SDC is separate from personal income tax. Dividends are not subject to personal income tax in Cyprus at all — the only levy is SDC for domiciled residents.
SDC applies only to Cyprus tax residents domiciled in Cyprus. Non-dom status must be formally applied for.
Corporate tax chain
Questions about Cyprus dividend tax?
Ask Taxerly for instant answers, or book a call with a licensed Cyprus tax advisor.
See your own number in 60 seconds
Answer a few quick questions. Free, no card.
Get my 2026 estimate →