Cyprus Tax Update: Alternative SDC Regime for Certain Deemed-Domiciled Individuals

The Cyprus Tax Department has issued Circular 2/2026, dated 29 May 2026, clarifying the operation of the alternative method of imposing Special Defense Contribution (SDC) under Article 3D of the Special Contribution for the Defense of the Republic Law.

This regime is relevant to individuals who do not have a Cyprus domicile of origin but are, or will be, deemed domiciled in Cyprus under the 17-out-of-20-year tax residency rule.

Please click here to find more details about the tax update.

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