UK WILL DISCONTINUE THE NON DOM REGIME IN APRIL 2025
The UK will abolish the nom-dom tax regime from April 2025 and introduce a new “residence-based scheme with internationally competitive arrangements for people coming to the UK on a temporary basis”, announced Rachel Reeves, the UK Chancellor of the Exchequer, when she presented the 2025 UK budget. She said "We will abolish the non-dom tax regime and remove the outdated concept of domicile from the tax system from April 2025 ..... we will introduce a new, residence based scheme with internationally competitive arrangements for those coming to the UK on a temporary basis while closing the loopholes in the scheme .....”

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CYPRUS IS ONE OF THE JURISDICTIONS WHICH  WILL BENEFIT FROM THE ANNOUNCED CHANGES IN THE UK TAX REGIME
Several large tax advisory firms have made announcements in the international media, that Cyprus offers an ideal option for UK non-doms who are looking for an alternative solutions. Parsegh Zartarian, Senior Consultant of Zartec, a specialized advisory and consulting services firm, explained that "the Cyprus jurisdiction will benefit from the change in UK regulations. Now is the time, for the Cyprus government and professional bodies to highlight the many advantages for overseas HNWIs of adopting the 'Cyprus Non-dom' status."  He explained "Zartec has already seen an increase of enquiries in our LinkedIN and Facebook pages, from UK tax advisory firms who are interested to cooperate with our office to offer this solution to their clients" 

WHAT DOES UK NON-DOM (NON-DOMICILED) MEAN ?

Non-domiciled residents are individuals who live in the UK (have their residence in the UK), but pay tax on their permanent place of residence abroad. This means these individuals do not have to pay UK tax rates on their foreign income. The Labour Party had pledged in their election manifesto to replace the non-dom tax regime and introduce a shorter-term scheme for temporary visitors to the UK. 

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WHAT IS CHANGING IN THE UK NON DOM TAX REGIME?
From 6 April 2025, the non-dom regime in the UK (where the individual could elect domicile) will be abolished and replaced with a new tax regime based on residence. This change will affect an estimated over 74,000 UK non-doms. The new regime will provide 100% tax relief on foreign income and gains (FIG) for non-doms in the first 4 years of tax residence, provided these individuals have not been UK tax resident in any of the preceding 10 consecutive years.

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WHY IS THE CYPRUS NON DOM TAX REGIME ATTRACTIVE ?
Parsegh Zartarian said that "UK non-domiciled HNWIs interested in exploring available options, should consider the Cyprus non dom regime which has the usual '183-day rule' and an attractive '60-day rule' and a long 17-year non-dom status, all of which combined create a generous tax regime by international standards." For several years now, Cyprus non-dom tax status grants significant tax benefits, including tax exemptions from dividends and interest income. A few added benefits include:

• Profit from the sale of shares and other qualifying titles (securities) is exempt from Cyprus taxation, provided that the underlying assets do not include immovable property located in Cyprus.

• Up to, €19,500 of taxable income is tax-exempt. Any taxable personal income in excess of this amount is taxed at progressive rates ranging from 20% to 35%.

• 50% exemption for remuneration from employment in Cyprus by persons who were resident outside Cyprus before commencement of their employment. The exemption applies for a period of 10 years commencing from the year of employment if such income exceeds €100,000 per year.

• If remuneration from Cyprus sources is less than €100,000, a 20% exemption is granted or €8,550 ( whichever is lower. For employment commencing between 2012 and 2025, the exemption applies for a period of 5 years starting from the tax year following the year of employment.

• 100% exemption on remuneration from the rendering of salaried services outside Cyprus to a non-resident employer or a permanent establishment outside the Republic of a resident employer, for an aggregate period in the year of assessment of more than 90 days.

• For Cyprus immovable property acquired up to 31 December 2016, profit from future disposal of such property will be exempt from the 20% Capital Gains Tax (“CGT”).

• Sale of immovable property located overseas is exempt from Cyprus Capital Gains tax (CGT).

• Pensions received for past employment abroad are taxed in Cyprus at a flat rate of 5% for amounts exceeding €3,420 per year.

• No inheritance tax

• No wealth tax

• No gift taxation.