As billionaires abandon the UK, now is the time for Cyprus to showcase its non-dom benefits

Egyptian billionaire Nassef Sawiris has become the latest in a growing list of high-profile HNWIs relocating from the UK, following the country’s changes to non-dom status that took effect on 6 April.

While his brother and fellow billionaire, Naguib Sawiris, has strong ties to Cyprus through Ora Developers’ involvement in the Ayia Napa Marina, Nassef Sawiris has opted to relocate to Italy and Abu Dhabi.

As reported by media outlets including the Financial Times, Nassef Sawiris joins a wave of other HNWIs leaving—or considering leaving—the UK, with steel magnate Lakshmi Mittal cited as another prominent example.

Developments like these highlight the opportunity for Cyprus to promote the many advantages it offers to non-doms and HNWIs, especially those reacting to the UK’s policy shift.

As reported in the Financial Times, Nassef Sawiris said the tax changes had driven him to leave the UK. Sawiris, who is Egypt’s richest man and co-owner of English football club Aston Villa, told the news outlet the decision to move abroad after 15 years of living in the UK was because of the government crackdown on non-domiciled residents announced by the previous Tory administration.

The Financial Times noted that these changes, which had been announced by Conservative chancellor Jeremy Hunt and confirmed by his Labour replacement Rachel Reeves, had put an end to a tax regime that allowed UK residents who declared their permanent home was elsewhere to avoid paying tax on foreign income and gains. Nassef Sawiris also told the Financial Times that changes to inheritance tax — which Labour introduced — had played a role in his decision to give up his UK residency.

Time is now of the essence for Cyprus to attract other HNWIs leaving the UK to consider the island as an attarctice alternative.

In addition to the island’s renowned quality of life, Cyprus is in the process of finalising a proposed tax reform. Early indications suggest the country will remain attractive to non-doms and high-net-worth individuals. Presenting its recommendations, the University of Cyprus’ Economics Research Centre (CypERC) proposed maintaining the non-dom regime, while expanding it by introducing an annual fee.

Even before this proposal, Cyprus’ appeal as an investment destination and ideal base for HNWIs was highlighted during the ‘Non-Doms: The Cyprus Private Client Offering Gathering 2024’ conference, organised in London by IMH in collaboration with Invest Cyprus.

Ahead of the event, Invest Cyprus CEO Marios Tannousis emphasised the need for targeted promotion of Cyprus’ non-dom scheme to potential investors. He noted that attracting even a small fraction of the UK’s departing non-doms could yield significant benefits for the country.

Tannousis explained that investors who spend time and capital in Cyprus contribute to the economy not only through direct investments but also via broader consumption—such as spending in restaurants, hotels, and the real estate sector. He added that satisfied investors are likely to deepen their involvement and diversify their interests across various industries.

“When a new investor chooses Cyprus as a base for investments, businesses, and other ventures, they generate a multiplier effect on the economy—especially if they are professionals of a high calibre,” Tannousis said. “In some cases, these investors also bring valuable know-how that benefits the country.”

Commenting when the UK first announced the non-dom changes, Costas A. Markides, Board Member of International Tax and Corporate Services at KPMG Cyprus, noted, “Cyprus may benefit, and we should highlight our own incentives. This may be an opportunity for Cyprus to attract investors seeking to leave London.”

To capitalise on this, he stressed, “we must showcase the Cyprus Non-Dom Regime that we already have in place.”

With the UK’s changes now being implemented, Cyprus is well positioned to build on the momentum generated at the London event.