UK
US
Non-dom status and investment portfolios
Cyprus non-dom status concerns a person's tax classification. It is not an investment account and does not make every form of income tax-free. Establish tax residence, domicile history and the income category before applying a headline exemption.
Dividends, interest, gains on qualifying securities and business income need separate treatment. Review each account's underlying holdings, rather than assuming that an ISA, offshore bond or foreign fund will receive the treatment of an ordinary share portfolio.
Country facts to keep in view
- Personal income tax
- 0–35%Ordinary progressive personal income tax. Employment reliefs may apply; social and healthcare contributions are separate.
- Company tax
- 15%Standard corporate rate from 1 January 2026; special exemptions and reliefs have conditions.
- Dividend tax
- 0% SDC for qualifying non-domsDomiciled residents generally face 5% SDC on post-2025 profits; older profits can face 17%. GHS contributions may still apply.
- Foreign pension tax
- 5% election above €5,000Or elect ordinary rates annually. Pension classification, treaty rules and healthcare contributions need review.
A situation worth reviewing
A person moving with an ISA, a brokerage account and dividends from their own company should map the income from each. Non-dom treatment may be relevant to some receipts, while company residence, healthcare contributions and US rules can require different answers.
Foreign pension election versus ordinary rates
The Ministry of Finance’s 2026 guidance allows qualifying foreign pensions to be assessed under ordinary rates or an election applying 5% above the annual threshold, which is €5,000 for 2026. Compare the methods for the actual income rather than applying 5% to every payment or using the previous threshold.
Identify private pensions, government-service payments, social security and unusual lump sums separately. Treaty allocation, account recognition and any healthcare contribution still matter. Non-dom treatment for specified investment income does not replace this pension analysis.
Income today, flexibility tomorrow
A retiree receiving modest regular payments may reach a different answer from someone taking a large withdrawal. Compare both available methods for the actual year and identify which country can tax each pension before changing withdrawals.
For UK assets and UK connections
Review UK departure independently of the Cyprus residence test. Identify pensions and government-service payments under the UK–Cyprus convention before choosing withdrawals or requesting relief. An ISA or investment bond also needs its own Cyprus classification; non-dom status is not a blanket approval of every British wrapper.
For US persons
The US–Cyprus treaty separates private pensions and social-security provisions and includes a saving clause. Identify the particular IRA, Roth or 401(k) rather than assuming all US retirement accounts qualify alike. Non-US funds and investment contracts also need PFIC and classification review before purchase.
Before changing an arrangement
Use the actual residence and domicile history, receipt type and planned year. Compare the qualifying foreign-pension election with ordinary rates and check any healthcare contributions. For investments, separate Special Defence Contribution treatment from other charges and foreign obligations. A headline non-dom exemption does not decide the tax treatment of an unfamiliar contract.
YOUR EXISTING ASSETS
How could your accounts fit?
Open the accounts you hold. These are starting points for a review, with the conditions and evidence attached to each finding.
UK accounts
UK ISA! Review / opportunity
Your ISA holdings matter more than the label
Cyprus securities-gain and non-domicile provisions need to be checked against the actual investments.
UK ISA relief can continue while abroad, with subscription restrictions. It does not decide Cypriot income tax, SDC or health contributions.
Worth exploring: Existing holdings may already fit local relief without a new wrapper.
Ask a planner: How will Cyprus classify each return inside my ISA?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
General investment account! Review / opportunity
Check securities gains, dividends and interest separately
Qualifying securities gains can be exempt. Non-domicile treatment concerns particular charges rather than every investment return.
Confirm the instrument, domicile status and applicable health contributions. A capital-gain exemption should not be applied to all income or property-linked assets.
Worth exploring: Compare a straightforward portfolio with any proposed structure first.
Ask a planner: Would my existing portfolio qualify, and which charges remain?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
UK pension / SIPP! Review / opportunity
Compare the 5% election with ordinary assessment
From 2026, the separate foreign-pension election applies 5% above €5,000, where the pension qualifies.
The tax department allows comparison with normal rates. The UK treaty separates private and government-service pensions; lump sums and health contributions require their own review.
Worth exploring: A withdrawal plan may improve the result without transferring the pension.
Ask a planner: Which payment qualifies, and is the election actually better for me?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
UK onshore bond! Review / opportunity
Do not carry a UK bond credit into Cyprus
A UK onshore policy needs Cypriot classification independently of the UK chargeable-event calculation.
The published securities exemption does not establish that insurance proceeds qualify. Check the contract before relying on a credit for UK insurer-level tax.
Worth exploring: Retaining the policy could remain sensible after a contract-specific review.
Ask a planner: How is my actual UK policy taxed on withdrawal in Cyprus?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
Offshore investment bond! Review / opportunity
Insurance proceeds are not automatically exempt securities gains
An offshore policy must be assessed separately from a portfolio of directly owned securities.
The insurer, contract and payment determine the classification. Check the UK temporary non-residence rules if a return to the UK is possible.
Worth exploring: Check recognition and withdrawal timing before replacing the wrapper.
Ask a planner: Is a surrender treated as insurance income, a gain or something else?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
UK operating business! High priority
Moving the owner does not move every company obligation
Managing or working for the UK business from Cyprus can raise residence, establishment and personal-income questions.
The UK-Cyprus convention has separate residence, business-profits and directors’ fees provisions. Establish real activity before assuming the result of a holding-company structure.
Worth exploring: A review of management and remuneration may be more useful than adding an entity.
Ask a planner: Where will decisions, contracts and work actually happen?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
US accounts
401(k)! Review / opportunity
A 5% local headline is not the full 401(k) result
The older US-Cyprus treaty describes periodic pensions from past employment and preserves US citizenship taxation.
Check whether the planned payment fits Article 23. A lump sum and the plan’s accumulation treatment should not inherit the periodic-payment answer automatically.
Worth exploring: Plan the withdrawal route before changing a US employer plan.
Ask a planner: How do Cyprus pension treatment and US credits fit my withdrawals?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
Traditional IRA! Review / opportunity
An IRA needs a payment-by-payment treaty check
Do not assume every individual retirement payment meets the treaty definition of a periodic past-employment pension.
Account funding history and the nature of the withdrawal matter. The local foreign-pension election is a separate question from US taxation and relief.
Worth exploring: Keeping the IRA may avoid an unnecessary cross-border rollover.
Ask a planner: How would my specific IRA payment be classified in Cyprus?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
Roth IRA! High priority
US Roth exemption is not automatic Cyprus exemption
The US-Cyprus treaty does not provide the explicit Roth exemption example found in the Malta explanation.
Check local recognition and the nature of each payment before treating a qualified US withdrawal as tax-free in Cyprus.
Worth exploring: Review withdrawals before assuming a Roth conversion or transfer improves the result.
Ask a planner: Will Cyprus recognise the exact Roth payment and its cost basis?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
US brokerage account! Review / opportunity
Check both the local relief and the US portfolio
Cyprus investment relief does not settle the US treatment of the owner or the investments.
Review dividends, interest and securities gains separately. Non-US funds proposed for local reasons need a PFIC check first.
Worth exploring: The existing US portfolio may be simpler than a new local wrapper.
Ask a planner: Which holdings keep the combined tax and reporting practical?
Sources & conditions
Checked 2026-10-19. Conditions apply; no personal eligibility decision.
International structures & other assets
International trust! High priority
Check trust terms and each person’s status
A trust label does not establish the Cypriot treatment of a settlor, trustee or beneficiary.
The deed, roles and distributions require personal review. US connections may add foreign-trust reporting, with exceptions that must be checked. No tax saving is calculated here.
Worth exploring: Review the existing deed before making distributions or adding another trust.
Ask a planner: Who controls the trust and who can receive its benefits?
Sources & conditions
Checked 2026-10-19. Personal review only.
International pension / QNUPS! High priority
An international pension needs scheme recognition
QNUPS, QROPS and other foreign pension labels do not establish the destination’s tax treatment.
The scheme’s jurisdiction, funding, access rules and recognition must be checked. US owners can face foreign-trust and reporting questions. No numeric saving is calculated.
Worth exploring: Compare the existing pension and portfolio before paying for another scheme.
Ask a planner: Does the exact scheme and planned payment qualify in every relevant country?
Sources & conditions
Checked 2026-10-19. Personal review only.
Overseas holding company! High priority
Review the company and its owners separately
A foreign holding company does not establish residence, treaty entitlement or tax-free distributions.
Management, activity, ownership and local classification need personal review. US connections can add foreign-company and reporting obligations. This tool does not model company or shareholder tax.
Worth exploring: Review the present structure before adding administration and costs.
Ask a planner: What genuine purpose and operating substance does this company have?
Sources & conditions
Checked 2026-10-19. Personal review only.
Other / overseas asset! Review / opportunity
Bring this account into a personal review
This account is visible in your map but is outside the supported tax assessment.
Its legal form, jurisdiction and owner determine the answer. We do not infer pension, insurance or investment relief from an unfamiliar account name.
Worth exploring: A planner can review the actual arrangement alongside the rest of your map.
Ask a planner: What documents would help a planner classify this account?
Sources & conditions
Checked 2026-10-19. Personal review only.
BRING THESE QUESTIONS
Make the conversation useful.
- Which of my investment receipts qualify for non-dom treatment and which remain taxable?
- Would the Cyprus foreign pension election or ordinary assessment give the appropriate result for my income?
- What would change if I moved again or returned home?
YOUR NEXT STEP
What would this mean for you?
Discuss your Cyprus plans, existing assets and cross-border tax questions with an International Wealth Planner.
Sources, dates and scope
Published 2026-10-19; editorial review 2026-10-26. The country fact check date is shown beside the facts. General education from an unregulated publisher and introducer. This article does not determine suitability or provide personal financial, tax or legal advice.
Foreign pension taxGESY beneficiary eligibilityInvestor immigration permitsPersonal income taxCompany taxUK residence and foreign incomeUS citizens and resident aliens abroadIRS Form 8621 and PFIC reportingCyprus Tax Department: tax residence and domicileHMRC: UK–Cyprus conventionUS Treasury: Cyprus treaty explanationOur editorial standards