The UK’s political environment is shifting. Lawmakers are advocating for the reintroduction of a £2.5 million investor visa to attract capital back into the country and counteract the significant loss of high-net-worth individuals. At the same time, the UK has abolished its non-dom regime, increased tax pressure across multiple categories, and announced plans for a 20 percent exit tax on individuals leaving the UK after becoming tax resident. These developments create a new reality. Investors still want access to the UK, but they no longer want to be UK tax resident. A new UK investor visa may offer a pathway for presence and investment, but it does nothing to mitigate the UK tax burden. Cyprus does. And when combined, the two systems form an efficient, compliant cross-border structure that meets modern mobility needs.
Immigration Route vs Tax Regime: Not Comparable, but Perfectly Compatible
A UK investor visa is an immigration category. The Cyprus Non-Dom regime is a tax status. They serve different purposes and are not substitutes for one another. But if the revived UK investor visa does not require more than 183 days of physical presence in the UK—a reasonable assumption—then an investor may:
- spend up to 182 days a year in the UK
- maintain a UK home
- invest the required £2.5 million or more
- satisfy UK immigration conditions
- spend at least 60 days in Cyprus
- qualify as a Cyprus tax resident under the 60-day rule
- obtain full Cyprus Non-Dom benefits for 17 years
- rely on the UK–Cyprus Double Tax Treaty
This combination allows for substantial UK presence without falling into UK tax residency.
Why UK-Focused Investors Still Need Cyprus Tax Residency
With the abolition of the UK non-dom regime, the UK is now one of Europe’s higher-tax jurisdictions for internationally mobile individuals. Income tax, dividend tax, capital gains tax, and inheritance tax all apply broadly. The proposed 20 percent exit tax adds another layer of risk: once someone becomes UK tax resident, leaving the UK may trigger taxation on unrealised gains. The solution is simple: avoid becoming UK tax resident in the first place. Cyprus allows individuals to spend up to 182 days a year in the UK while remaining Cyprus tax resident, as long as they meet the 60-day rule and manage their UK statutory residence ties. For anyone investing in the UK or spending up to half the year there, Cyprus offers the tax framework needed to maintain flexibility without exposure to unpredictable UK tax reforms.
Cyprus Non-Dom: The Tax Framework That Complements a UK Life
A Cyprus tax resident with Non-Dom status benefits from:
- 0 percent tax on worldwide dividends for 17 years
- 0 percent tax on worldwide passive interest
- 0 percent tax on capital gains from securities
- no wealth, inheritance or gift taxes
- full protection under the UK–Cyprus Double Tax Treaty
These benefits do not conflict with a UK investor visa. They enhance it. An individual can maintain an active presence in the UK for nearly half the year while structuring their global tax affairs under the stable, EU-compliant Cyprus Non-Dom framework.
A Practical, Modern, Cross-Border Strategy
The objective is not to replace the UK with Cyprus, nor to choose between them. The objective is to combine the advantages of both jurisdictions in a compliant and efficient way. A UK investor visa provides access, lifestyle, and economic opportunity. Cyprus Non-Dom provides predictability, long-term tax efficiency, and treaty-based protection. Investors who want to maintain a meaningful footprint in the UK without becoming subject to the UK tax net can achieve exactly that through this dual-jurisdiction strategy.
Savva & Associates can assist with all aspects of Cyprus residency, Non-Dom implementation, and cross-border structuring aligned with both UK and Cyprus rules.
Please get in touch with our team at:
| Charles Savva Managing Director BA, MBA, TEP, CA [email protected] +357 22516671 | Mina Pieri Senior Manager FCCA, MBA [email protected] +357 22510207 | Makis Pavlou Account Manager FCCA [email protected] +357 22510257 |