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The Premium Option for High Earners
2026 reform: the lump-sum extension. After the initial 17 non-dom years, you can keep the SDC exemption on dividends and interest for a flat €250,000 per five-year block (maximum two blocks, up to year 27). For very high foreign capital income, it fixes the SDC burden with planning certainty.
How It Works
€250,000 over 5 years (€50,000/year). No further tax on foreign income. Cypriot income taxed separately. Requires Non-Dom status + 60-day rule. Renewable once (10 years total: €500,000).
Approaching year 17, the numbers were clear for us: with a seven-figure dividend stream, the €250,000 block beats regular SDC comfortably – and we know our cost for five years in advance.
– Entrepreneur from Munich, in Larnaca since 2022
Who Benefits
The maths after year 17: dividends would face 5% SDC, interest 17%. The €250,000 block (€50,000/year in effect) pays off from roughly €1m/year in pure dividends, or from around €300,000/year in interest income. Below those levels, regular SDC is cheaper. Biggest advantage besides the savings: a fixed amount for five years – no surprises.
CMC Advice
Complex and individual. CMC analyzes: income types, regular vs lump sum comparison, DBA interaction, 5 vs 10 year planning. Free initial consultation for foreign income €200,000+.
Non-Dom Lump Sum Option
Topics: The Premium Option for High Earners, How It Works, Who Benefits
CMC Practical Tip
The premium option for long-term non-doms: extend the SDC exemption beyond year 17 for a flat €250,000 per five-year block.
Frequently Asked Questions
From ~€300,000-400,000 annual foreign income. Below: regular Non-Dom is cheaper. CMC calculates individual break-even.
€250,000/5 years covers all foreign dividends, interest, rent, capital gains. NOT included: Cypriot income (taxed separately).
Yes – Ltd profits are taxed at 15% CIT as usual. The SDC on dividends paid out to you is fully covered by the lump sum; only the capped GESY contribution (2.65%) remains. CMC structures this individually.
No – must be prospective. Once chosen: binding for 5 years. Careful analysis BEFORE deciding.
How CMC Supports You
At CMC Family Office Group, we are here for you – not only for tax and legal questions, but also for all practical topics of everyday life in Cyprus. Our team in Larnaca and Pafos knows the local conditions first-hand.
As your local contact, we handle: company formation and management, tax advisory and Non-Dom applications, ongoing bookkeeping and tax returns, support with authorities, and referrals to estate agents, lawyers, doctors and tradespeople.