Quick Answer
Non-Dom residents in Cyprus pay 0% income tax and 0% Special Defence Contribution on dividends - only GESY at 2.65% applies, capped at EUR 4,770 per year. This gives an effective rate of approximately 2.65%. Domiciled residents pay 5% SDC under the 2026 reform, reduced from 17%. Corporate tax of 15% applies at company level before distribution.
Under Cyprus Non-Dom status, dividend income is completely exempt from income tax and Special Defence Contribution (SDC). Only GESY (2.65%, capped at EUR 4,770/year) applies, giving an effective rate of approximately 2.65% for most dividend recipients. For domiciled residents, SDC was reduced from 17% to 5% under the December 2025 tax reform, effective from 2026 profits.