Petros Rialas: Cyprus is considered a prime choice of destination for high net worth individuals

Cyprus offers itself as a prime choice for foreign persons to become tax residents and take advantage of the very favourable Cyprus non-dom tax regime as a temporary or longer-term solution, according to Petros Rialas, CEO - Totalserve Management Ltd.

He was asked by CBN to comment on the UK’s decision to abolish its non-doms tax regime as of 6 April 2025.

“With the UK non-dom tax regime now officially soon coming to an end, many affected persons are on an urgent lookout for new alternatives,” said Rialas. “Cyprus offers itself as a prime choice whereby through the convenient 60-days route and easy to meet conditions, foreign persons can easily become Cyprus tax residents and take advantage of the very favourable Cyprus non-dom tax regime as a temporary or longer-term solution.”

According to the CEO, the UK non-dom regime has for a long time been a popular choice, mainly for high net worth individuals.

Current UK non-doms, as well as other foreign persons wishing to move their tax residency to another country, are now on the lookout for an option or alternative which can meet their personal, business and financial needs in a practical and efficient manner, he said.

“This is where Cyprus comes in with an alternative non-dom regime,” Rialas explained.

Cyprus, he said, is considered to be a prime choice of destination for such individuals (both EU and non-EU), either for a long-term or short-term solution. “This is mainly attributed to the Cyprus non-dom tax regime, which is automatically applicable to foreign persons becoming tax resident in Cyprus. In each case, the non-dom tax regime effectively applies for a maximum of 17 years.”

As Rialas said, foreign persons can now become Cyprus tax residents much easier than ever before through the very convenient 60 days route. This offers an immediate solution for cases where a new tax residency needs to be established quickly.

Big momentum of foreigners becoming Cyprus non-dom tax residents

“Currently, there is a big momentum of foreigners becoming Cyprus non-dom tax residents and effecting their international as well as local business affairs from Cyprus, as it offers a balanced combination of tax, non-tax and qualitative elements,” he pointed out.

Non-dom resident persons are specifically exempt from Cyprus taxation on dividends and interest, irrespective of the source country and irrespective of whether the funds are remitted to Cyprus or not. Furthermore, there is a complete tax exemption on all gains from sale of shares and other qualifying titles as well as from capital gains which do not relate to immovable property situated in Cyprus. And there is no inheritance tax.

“These tax exemptions are of particular interest to high-net-worth individuals, as the vast majority of their income usually derives from dividends, interest and capital gains,” Rialas explained.

As he pointed out, beyond the above, Cyprus offers an array of other attractive tax elements for both individuals and companies, and very appealing provisions to relocate businesses and key management to the island. “The general infrastructure facilitates the establishment of any level of needed business and operational substance with a comparative cost advantage when compared to other prime EU jurisdictions,” he said. “Further, there is the friendly business environment and attractive legal system based on the English common law principles.”

And the quality of life and the facilities offered are just as important, said Rialas. “The very convenient geographical position, pleasant Mediterranean climate, an abundance of blue flag beaches, low crime rate, modern infrastructure, high-end city, beachfront or mountain properties, international schools, advanced medical care facilities as well as cosmopolitan life, make quite a strong case for Cyprus as a supreme place to work, live and raise a family,” he said, before adding: “Cyprus offers stability, practicality, workability, predictability in the business environment, tax efficiency and peace of mind.”

The IMH conference in collaboration with Invest Cyprus in London

It is noted that IMH in collaboration with Invest Cyprus is organising on December 4 in London the conference "Non Doms: The Cyprus Private Client Offering Gathering 2024" with the main subject "Cyprus: A destination of choice for High Net Worth Individuals (HNWIs), their families, companies and employees".

The purpose of the conference is to highlight Cyprus, as one of the few places in the world and especially in the EU, that offers a full range of quality services to meet the needs of private customers, the wide range of advantages, both financial and non-financial, which is available to affluent and wealthy individuals, their families, businesses and employees.

In particular, the conference "Non Doms: The Cyprus Private Client Offering Gathering 2024" aims to present all the benefits and advantages of Cyprus for private clients, from taxation and wealth preservation, living and working in Cyprus, until the establishment of a business presence on the island.

Read more and find out about the conference HERE