Indexed universal life insurance (IUL) is permanent life insurance from international insurers, with a US dollar death benefit from US$1m and a cash value that earns index linked credits within a 0% floor and a cap; policy charges still apply, so cash value can fall. Cyprus residents, non-doms and expatriates can hold IUL, personally or through an offshore trust or company where the insurer accepts it. Cyprus has no inheritance tax, and residents who are not domiciled in Cyprus do not pay special defence contribution on dividends and interest; tax in a home country or a future country of residence can still apply. Capital for Life specialises in IUL and PPLI for internationally mobile families and the advisers who serve them. Information, not advice.
Can I buy IUL while living in Cyprus?Yes. Cyprus residents, non-doms and expatriates aged 18 to 79 can hold IUL from international insurers, with cover from US$1m, subject to local regulation and insurer acceptance.
Everything on this page is information, not advice. You can come to us directly, or through your financial adviser, private bank or trustee.
We work with you directly, subject to local regulation and insurer acceptance. Policies are issued on the basis of your country of residence, not your nationality, and we coordinate the illustrations, underwriting and medicals with the insurer.
To request an illustration, email quotes@capitalforlife.com.
Where you introduce a client, your own regulatory permissions govern the advice given to your client, and the client relationship stays with you. We provide the specialist structuring: insurer comparison, underwriting coordination and policy design.
Yes. Cyprus residents, non-doms and expatriates can hold IUL issued by international life insurers, subject to local regulation and insurer acceptance, with cover from US$1m.
Eligibility is set by your country of residence and the insurer's underwriting, not your nationality. Insurers accept applicants aged 18 to 79, and cover starts at US$1m of death benefit. There is no fixed upper limit for qualified applicants: large (jumbo) cases are structured across more than one insurer.
A policy can be owned personally, or by an offshore trust or company. Each insurer sets its own rules on which ownership routes it accepts for Cyprus residents, so the route is agreed before the application goes in.
Capital for Life specialises in IUL and PPLI for internationally mobile families and the advisers who serve them, with clients in Europe, the Middle East, Africa, Asia and Australia, and UK nationals abroad. The full guide to the product is what is indexed universal life insurance.
Cover starts at US$1m with no fixed upper limit. Cases of US$10m and more, often called jumbo life insurance, are structured across several international insurers.
A US dollar policy that stays in force wherever you live next, so the cover and the cash value move with you if you leave Cyprus.
For shipping, fund management and trading companies in Limassol and Nicosia, the company can own the policy on a founder, partner or key executive and receive the death benefit. See Key Person for Life.
Borrow against the cash value to clear property loans or fund a purchase in Cyprus or abroad. See policy loans below.
| Feature | Term life | Whole of life | IUL |
|---|---|---|---|
| Length of cover | A set number of years | Lifetime, while premiums are paid | Lifetime, while the policy is funded |
| Cash value | None | Depends on the contract; guaranteed protection plans often have none | Yes, earning index linked credits within a 0% floor and a cap |
| Borrowing against the policy | No | Only where the contract builds a cash value | Yes, through policy loans from the insurer |
| Suited to | A need for a fixed period, such as a mortgage | Lifetime cover at a set cost | Lifetime US dollar cover with a cash value to borrow against |
Family protection, retirement planning and access to loans lead the reasons enquirers give for wanting IUL. For a Cyprus resident that means borrowing against the policy for property and business, retirement income alongside pensions, and a defined US dollar legacy for family in several countries. Each is a structure to consider, not a recommendation.
Once cash value has built, you can borrow against it to buy property in Limassol, Paphos or abroad, fund a business opportunity or pay school and university fees, and keep your investments in place. The loan is a contractual right under the policy, arranged with the insurer.
The policy stays in force while the loan runs. Loan interest applies, and any outstanding loan is deducted from the death benefit. See how IUL policy loans work.
Cyprus tax residents with pensions from abroad can choose to have pension income above €5,000 a year taxed at a flat 5%, or at the normal rates. [2] An IUL builds a separate pool, in US dollars and outside any pension scheme.
You choose when to start drawing on it, at 50, 60 or later, usually through policy loans. See Income for Life.
The death benefit is set from day one and paid in US dollars to the beneficiaries you name, in the shares you choose, or to the trust that owns the policy. Families use it to leave a defined sum to children who live in different countries, and to give heirs cash for estate taxes and costs in other countries.
See Family for Life and, for company owners, key person cover.
US$5m of cover against ten years of planned premiums
$96,271 × 10 = $962,710, which is 19.3% of the $5,000,000 death benefit. Male non-smoker aged 40 to 49, 10-pay, indicative premium table.
This is an illustrative example, not a client. The profile is invented, and the premium comes from the indicative table in the calculator below.
A 46-year-old fund manager moved from London to Limassol with his wife and two children. He is tax resident in Cyprus and not domiciled there. He wants US$5m paid in US dollars to his family wherever they live, and a cash value he can borrow against later.
For a male non-smoker aged 40 to 49, the planned premium for US$5m of cover is US$96,271 a year on a 10-pay basis: US$962,710 over ten years, paid from age 46 to 55. US$5m is above the US$3m non-medical limit, so a medical is part of the application. Ownership, personal or through an offshore trust, and his UK and Cyprus tax position are settled with his tax adviser before the application goes in. His own illustration replaces these figures.
Share of selections, multiple selections allowed · 1,800 verified enquiries, June 2024 to June 2025
If you already hold an offshore bond, an international IUL works on a familiar footing: it is also a life insurance policy issued outside the investor's home country, and for UK tax it is treated in the same way as an offshore bond. The difference is what sits inside: an offshore bond holds an investment portfolio, while an IUL holds a death benefit and a cash value that earns index linked credits. Offshore bonds and IUL compared.
IUL is a life insurance policy first, with credits earned inside the insurer's index accounts. Families who want open investment choice use private placement life insurance (PPLI) or an offshore bond instead, and some hold both for different jobs.
An IUL policy has two parts: a death benefit and a cash value. Premiums, after charges, build the cash value, which earns credits linked to an index such as the S&P 500, within a cap and a 0% floor.
The cap rate limits the credit in a strong year. The floor means a negative index year produces a nil credit instead of an index loss. Policy charges are deducted regardless, which is why cash value can still fall in a flat or negative year.
Once sufficient cash value has built, you can borrow against it. Fixed and participating loans behave differently in different index conditions. The death benefit is paid to your beneficiaries under the policy terms.
Hypothetical S&P 500 returns · 9.3% annual cap · 0% floor
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---|---|---|---|---|---|---|---|---|
| S&P 500 return | +13.7% | -9.1% | +5.5% | +19.4% | -14.2% | +7.8% | -3.5% | +14.0% |
| IUL credit | 9.3% | 0% | 5.5% | 9.3% | 0% | 7.8% | 0% | 9.3% |
Planned premiums for US$1m of cover start from about US$11,000 a year on a 10-pay basis, for a non-smoker aged 30 to 39. The premium for your cover depends on your age, gender, health, smoker status, the death benefit and how the policy is funded.
Many clients pay US$100,000 or more a year to build more cash value. Premiums can be paid as a lump sum or over a set number of years, often 5 to 10. Paying over several years (multi-pay) is Carlton Crabbe's preferred route. Capital for Life can also arrange premium financing, where a lender advances part of the premium against the policy; interest costs and lender criteria apply. See premium financing for IUL.
An insurer policy illustration shows the premium, cover and cash value for your own profile before any decision.
Each rule carries the date it was checked. Tax rules change; confirm the position with your tax adviser before acting.
| Tax residence | More than 183 days in Cyprus in the tax year, or all four conditions of the 60-day rule: at least 60 days in Cyprus, no more than 183 days in another country, a business or employment in Cyprus, and a permanent home in Cyprus, owned or rented. Tax Department page updated 31 August 2026; checked November 2026. [1] |
|---|---|
| Non-domiciled residents | Not subject to special defence contribution on dividend and interest income. Someone tax resident in Cyprus for at least 17 of the last 20 years is treated as domiciled in Cyprus. As at November 2026. [1] |
| Extending non-dom treatment | A person whose domicile of origin is outside Cyprus, but who is treated as domiciled after 17 of 20 years, can extend the exemption for two further five-year periods by paying €250,000 for each period. Circular 02/2026; checked November 2026. [1] |
| Special defence contribution | For residents domiciled in Cyprus: 5% on dividends from profits earned after 1 January 2026 (17% before), and 17% on interest (3% on some government and listed bonds). Ministry of Finance page updated 9 March 2026; checked November 2026. [2] |
| Personal income tax | 0% up to €22,000, then 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above €72,000. Tax year 2026; checked November 2026. [3] |
| First employment in Cyprus | A deduction of 20% of employment income, up to €8,550, or 50% where the salary is above €55,000 (€100,000 under the earlier circular), under the conditions in the Tax Department's circulars. Tax year 2026; checked November 2026. [3] |
| Life insurance premium relief | Premiums on a life policy on your own life, approved by the Commissioner of Taxation, are deductible within limits: up to 7% of the sum insured, and, together with pension, provident fund, medical fund, GHS and social insurance contributions, up to one fifth of taxable income. If the policy is redeemed within six years, 20% to 30% of the premiums that received relief is added back to taxable income. Tax year 2026; checked November 2026. [3] |
| Inheritance tax | None: Cyprus has no wealth, inheritance or gift tax. European Commission, June 2025; checked November 2026. [4] |
| Currency | Cyprus has used the euro since 1 January 2008. IUL policies are issued in US dollars, so premiums, loans and the death benefit carry euro to dollar exchange rate risk. As at November 2026. [5] |
| Who can apply, cover and premium | Residents, non-doms and expatriates aged 18 to 79, subject to underwriting, local regulation and insurer acceptance. Cover from US$1m. Planned premiums from about US$11,000 a year (10-pay, non-smoker aged 30 to 39). Capital for Life, as at November 2026. |
| Medical underwriting | Non-medical terms for up to US$3m of cover for healthy applicants under 55. Otherwise a medical is needed, arranged with the insurer. Capital for Life, as at November 2026. |
| Ownership and timing | Personal, or an offshore trust or company where the insurer accepts it for Cyprus residents. 8 to 12 weeks from application to policy issue. Capital for Life, as at November 2026. |
Moving to Cyprus from outside the EU · permanent residence by investment, Migration Department
It depends on residence, domicile and who owns the policy. An individual is Cyprus tax resident under the 183-day rule or the 60-day rule; residents who are not domiciled in Cyprus do not pay special defence contribution on dividends and interest, and Cyprus has no inheritance tax. How Cyprus treats the policy's growth, loans and withdrawals for you is confirmed with a Cyprus tax adviser before the policy is set up. [1] [4]
Outcomes depend on residence, citizenship, ownership and what you do with the policy over its life. Tax in a country of citizenship, a former home country or a future country of residence can still apply.
Capital for Life does not provide legal or tax advice. We prepare the policy facts your tax adviser needs and work alongside specialist tax advisers on cross border cases.
The policy is portable. It stays in force and in US dollars wherever you live, and you keep access to its cash value and cover.
Your tax position follows your residence. If you rely on the 60-day rule and your business or employment in Cyprus ends during the year, you are no longer treated as Cyprus tax resident under that rule for that year. [1] How growth, loans and withdrawals are taxed after a move depends on the rules of your new country, so ownership and structure are reviewed before you move rather than after.
For UK tax, an international IUL is treated in the same way as an offshore bond, which matters if you return to the UK. An offshore trust can hold the policy for internationally mobile families, where the insurer accepts it for Cyprus residents.
Cyprus has no inheritance tax, so the planning turns on who receives the money, in which currency, and how estate taxes in other countries are met. The death benefit is paid in US dollars to the beneficiaries named under the policy, or to the trust that owns it. [4]
You choose who receives the death benefit and in what shares.
A policy held in trust supports planning across jurisdictions and privacy for beneficiaries, where the insurer accepts trust ownership for Cyprus residents.
The death benefit is paid in US dollars, for families whose children, property and investments sit in more than one currency.
A country of citizenship, or the country where assets or heirs sit, may tax the estate. The death benefit gives heirs cash to meet those taxes and costs.
Applying runs from a first consultation to policy issue and typically takes 8 to 12 weeks.
Your objectives, age, health, residence and the cover you want.
Illustrations from the insurers available for your profile, with premium and cover options side by side.
Application forms, ownership documents and financial disclosure on source of wealth, assets and income.
Non-medical terms up to US$3m for healthy applicants under 55. Above that, blood tests, an ECG, a treadmill test and health history, arranged with the insurer and booked at your convenience.
The underwriting decision, the first premium and the policy documents.
IUL for residents of Cyprus, including non-doms and expatriates
Yes. Cyprus residents, non-doms and expatriates can hold IUL issued by international life insurers, with cover from US$1m, subject to local regulation and insurer acceptance. Eligibility is set by your country of residence and the insurer's underwriting, not your nationality, and insurers accept applicants aged 18 to 79. A policy can be owned personally, or by an offshore trust or company where the insurer accepts it.
Planned premiums for US$1m of cover start from about US$11,000 a year on a 10-pay basis, for a non-smoker aged 30 to 39. Many clients pay US$100,000 or more a year to build more cash value. The premium for your profile depends on your age, gender, health, smoker status, the death benefit and how the policy is funded, and a policy illustration shows the exact figures.
It depends on your age and the cover. Healthy applicants under 55 can be offered non-medical terms for up to US$3m of cover. Otherwise a medical is needed, which can include blood tests, an ECG, a treadmill test and a review of health history, arranged with the insurer. Insurers also ask for financial disclosure on source of wealth, assets and income.
It depends on the job the cover has to do. For lifetime US dollar cover from US$1m with a cash value that can be borrowed against, indexed universal life from an international insurer is built for that purpose. Term cover suits a need for a fixed number of years, such as a mortgage, at a lower cost. A policy illustration compares the options on your own age, health and cover.
Yes. A company can own an IUL policy on a founder, partner or key executive, pay the premiums and receive the death benefit. The payout funds the business through the loss or a buy-sell agreement between shareholders, and the cash value builds as a company asset. Cover starts at US$1m, and healthy applicants under 55 can be offered non-medical terms up to US$3m. How Cyprus taxes the company's premiums and proceeds is a question for its tax adviser.
Yes, once sufficient cash value has built. A policy loan is a contractual right under the policy, arranged with the insurer, and the policy stays in force while the loan runs. Loan interest applies, and any outstanding loan is deducted from the death benefit. Fixed and participating loans behave differently in different index conditions.
No. Cyprus has no wealth, inheritance or gift tax, according to the European Commission's 2025 country report on Cyprus. Inheritance or estate tax can still arise in a country of citizenship, or where assets or heirs are, and an IUL death benefit paid in US dollars can give heirs cash to meet those taxes. Capital for Life does not provide legal or tax advice.
Cyprus tax residents who are not domiciled in Cyprus do not pay special defence contribution on dividend and interest income. Someone tax resident for at least 17 of the last 20 years is treated as domiciled, and a person whose domicile of origin is outside Cyprus can then extend the exemption for two further five-year periods at €250,000 each. How Cyprus treats a specific IUL's growth, loans and withdrawals is confirmed with a Cyprus tax adviser before the policy is set up.
Within limits, for approved policies. Cyprus allows a deduction for premiums on a life policy on your own life approved by the Commissioner of Taxation, up to 7% of the sum insured and, together with pension, provident fund, medical fund, GHS and social insurance contributions, up to one fifth of taxable income. If the policy is redeemed within six years, 20% to 30% of the premiums that received relief is added back to taxable income. Whether an international IUL qualifies is a question for a Cyprus tax adviser.
The policy stays in force and in US dollars wherever you live, and you keep access to its cash value and cover. Your tax position follows your residence, so the rules of your new country decide how growth, loans and withdrawals are taxed there. For UK tax, an international IUL is treated in the same way as an offshore bond. Ownership and structure are best reviewed before you move rather than after.
Capital for Life specialises in IUL and PPLI for internationally mobile families and the advisers who serve them. Tell us your age, residence and the cover you want, and we send illustrations from the insurers available to you.
To request an illustration, email quotes@capitalforlife.com.
Each insurer sets its own caps, charges, underwriting terms and ownership rules. A policy illustration shows the figures for a specific policy.
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