Updated: August 2026
Dividend Tax in Cyprus
How dividends from Cyprus companies are taxed — SDC, GHS, and what non-domiciled status means for your tax bill.
Key Facts
SDC on dividends: 5% (0% for non-dom)
GHS on dividends: 2.65% (no exemption)
Income tax on dividends: 0% (exempt)
Total tax (domiciled): 7.65% (5% + 2.65%)
Total tax (non-dom): 2.65% (GHS only)
How Dividends Are Taxed
Cyprus does not tax dividends as income. Instead, dividends are subject to Special Defence Contribution (SDC) at 5%, plus GHS at 2.65%. The key distinction is domicile status:
Domiciled Residents
Pay 5% SDC + 2.65% GHS = 7.65% total
Non-Domiciled Residents
Pay 0% SDC + 2.65% GHS = 2.65% total
Non-Domiciled Status
You are considered non-domiciled if:
- • Your domicile of origin is outside Cyprus
- • You have not been a Cyprus tax resident for 17 out of the last 20 years
Important: Even non-dom residents still pay 2.65% GHS on dividends. There is no GHS exemption for non-dom status.