Editor’s Note, Updated January 2026: The Cyprus tax residency rules were reformed effective 1 January 2026. The previous requirement that individuals could not be tax resident in any other country has been removed. Individuals can now qualify under the 60-day rule even if they are tax residents elsewhere. Dual residency situations are resolved under the tie-breaker rules of an applicable double tax treaty. This article reflects the current law.
An individual is considered a Cyprus tax resident if they spend more than 183 days in Cyprus during a calendar year. Alternatively, since January 2017, a second route exists: the 60-day rule, which allows qualifying individuals to claim Cyprus tax residency without spending more than 183 days on the island.
The 183-Day Rule
An individual who spends more than 183 days in Cyprus during a calendar year is automatically considered a Cyprus tax resident, without any further conditions. For day-counting purposes, the day of arrival in Cyprus counts as a day in Cyprus, while the day of departure counts as a day outside Cyprus. Arrival and departure from Cyprus on the same day count as a day in Cyprus. Departure from and return to Cyprus on the same day count as a day outside Cyprus.
The 60-Day Rule
Since 2017, individuals may qualify as Cyprus tax residents even if they spend 183 days or fewer in Cyprus, provided they satisfy all of the following conditions within the same tax year, from 1 January to 31 December:
Condition 1: Physical Presence
Reside in Cyprus for at least 60 days during the calendar year. The day of arrival counts as a day in Cyprus, while the day of departure counts as a day outside Cyprus.
Condition 2: No Single Country Threshold
Do not reside in any other single country for a period exceeding 183 days in aggregate during the same tax year. This does not mean staying under 183 days outside Cyprus in total. It means that no single other country may account for more than 183 days.
Condition 3: Business or Employment Ties
Carry on a business in Cyprus, be employed in Cyprus, or hold an office, such as a directorship, in a Cyprus tax-resident company at any time during the tax year. The relevant business activity, employment or office must not be terminated during that tax year. In practice, employment agreements, salary payments, director remuneration or business records may be used to demonstrate this connection.
Condition 4: Permanent Residence in Cyprus
Own or rent a permanent residential property in Cyprus during the relevant tax year. The property must be maintained as the individual’s permanent residence and not merely used as temporary tourist accommodation. If a rental agreement is terminated during the year, or an owned property is rented to third parties so that it is no longer available as the individual’s residence, professional tax advice should be obtained before relying on it to satisfy the 60-day rule.
Important: Dual Tax Residency, Updated January 2026
Before the 2026 reform, a fifth condition applied: an individual could not be a tax resident of any other country during the same tax year. That condition was removed effective 1 January 2026.
Individuals can now satisfy the Cyprus 60-day rule even if they are tax residents in another jurisdiction. Where dual residency arises, the tie-breaker rules of an applicable double tax treaty may determine the individual’s treaty residence.
How to Apply for a Tax Residency Certificate (TRC)
To obtain official confirmation of Cyprus tax residency, an individual must submit the relevant declaration and supporting documentation to the Cyprus Tax Department. The documentation required will depend on the applicant’s circumstances and whether they qualify under the 183-day rule or the 60-day rule.
Applicants may be asked to provide evidence supporting their Cyprus day count, permanent residence and, where relying on the 60-day rule, their qualifying business, employment or office in Cyprus. The Cyprus Tax Department may request further information or supporting documentation before issuing the certificate.
A Tax Residency Certificate may be required when applying the provisions of a double tax treaty or confirming Cyprus tax residency to a foreign tax authority.
Obligations of a Cyprus Tax Resident
Cyprus tax residents are generally subject to Cyprus tax on their chargeable income from sources in Cyprus and abroad, subject to applicable exemptions, deductions and double tax treaty relief. Individuals should obtain a Cyprus Tax Identification Code and comply with the applicable tax-return requirements.
From the 2026 tax year, Cyprus tax-resident individuals who are between 25 and 70 years old on 31 December of the relevant year are required to submit an annual income tax return, regardless of whether they earned taxable income. Cyprus tax-resident individuals outside this age range may also be required to file if they receive gross income falling within the Income Tax Law.
Eligibility under either residency route is assessed separately for each calendar year. If the conditions relied upon are not ultimately satisfied, the Cyprus Tax Department may refuse or revoke the Tax Residency Certificate for that year.
Tax Benefits for Cyprus Tax Residents
Cyprus tax residents may benefit from several tax exemptions and incentives:
Foreign Employment Income: Remuneration from salaried services rendered outside Cyprus for more than 90 days during a tax year may be exempt from Cyprus income tax where the services are provided to a non-Cyprus resident employer or to a foreign permanent establishment of a Cyprus-resident employer, subject to the relevant conditions.
Sale of Securities: Profits from the sale of qualifying securities are generally exempt from Cyprus income tax. Cyprus Capital Gains Tax may still apply where the disposal relates directly or indirectly to Cyprus immovable property.
Retirement Benefits: Qualifying capital sums received from approved Cyprus or EU funds, including approved provident funds and lump sums arising from pension conversion, may be exempt from income tax. Other retirement, termination or ex-gratia payments may be taxable under the rules applying from 2026.
Foreign Pension Income: Foreign pension income may be taxed at a flat rate of 5% on amounts exceeding €5,000 annually. The taxpayer may instead elect each year to have the pension taxed under the normal personal income tax rates and bands.
Estate and Gift Taxes: Cyprus does not impose estate duty, wealth tax, gift tax or inheritance tax, although other tax or transfer rules may apply depending on the transaction and the assets involved.
Contributions: Qualifying contributions to Social Insurance, the General Health System, approved medical funds, pension funds, provident funds and qualifying insurance policies may be deductible, subject to category-specific limits and an overall limit of one-fifth of chargeable income.
The Non-Domiciled (Non-Dom) Status
Cyprus tax residents who are not considered domiciled in Cyprus for Special Contribution for Defence purposes may qualify for non-dom treatment.
An individual is generally considered domiciled in Cyprus if they have a domicile of origin in Cyprus, subject to statutory exceptions, or if they have been a Cyprus tax resident for at least 17 of the 20 tax years immediately preceding the relevant tax year.
A qualifying non-dom individual is generally exempt from Special Contribution for Defence on dividend and interest income. From 1 January 2026, rental income is exempt from Special Contribution for Defence regardless of domicile status. Income tax and General Health System contributions may still apply depending on the type and source of income.
General Health System contributions are generally charged at 2.65% on dividend, interest, rental and certain other income, with contributions capped by reference to total annual income of €180,000.
Non-dom treatment would ordinarily cease once an individual becomes deemed domiciled after being a Cyprus tax resident for 17 of the previous 20 tax years. From 1 January 2026, individuals whose domicile of origin is outside Cyprus may, subject to the applicable conditions, elect to extend their non-dom treatment for up to two additional five-year periods. Each five-year extension requires an advance lump-sum payment of €250,000.
The 60-day rule offers significant flexibility for internationally mobile individuals and business owners who wish to establish Cyprus tax residency without relocating full-time. The January 2026 reform further expanded access to this route by removing the requirement to avoid tax residency in other countries. With careful attention to day counting, property maintenance and business ties, the 60-day route provides a practical pathway to Cyprus tax residency while maintaining global business operations and residency elsewhere.
Royal Pine guides founders through the precision requirements of both routes. Whether the 183-day rule or the 60-day rule fits your situation depends on your travel patterns, business structure and existing tax residency. We help you satisfy all conditions correctly and maintain compliance year to year.
Frequently Asked
Founder Questions, Answered.
Do I need to spend exactly 60 days in Cyprus, or is that a minimum?
No. Sixty days is the minimum required under this route, not a target. You may spend between 60 and 183 days in Cyprus during the calendar year and still rely on the 60-day rule, provided all the remaining conditions are satisfied. If you spend more than 183 days in Cyprus, you qualify under the standard 183-day rule instead.
How are days in Cyprus counted under the 60-day rule?
The day of arrival in Cyprus counts as a day in Cyprus, while the day of departure counts as a day outside Cyprus. Arrival and departure from Cyprus on the same day count as a day in Cyprus. Departure from and return to Cyprus on the same day count as a day outside Cyprus. The calculation is based on the calendar year, from 1 January to 31 December, rather than a rolling 12-month period. The same day-counting rules apply to both the 60-day rule and the 183-day rule.
Can I still have a home in another country?
Yes. The 60-day rule does not require Cyprus to be your only home. You may own or rent a property in another country, provided you do not spend more than 183 days in any one other country and continue to satisfy all the other conditions of the Cyprus 60-day rule, including maintaining a permanent residence in Cyprus.
From 1 January 2026, being considered tax resident in another country no longer prevents you from qualifying under the Cyprus 60-day rule. Where Cyprus and another country both treat you as tax resident, the tie-breaker provisions of the applicable double tax treaty may determine your residence for treaty purposes.
What counts as a qualifying connection to Cyprus?
The required Cyprus connection must take one of three forms: carrying on a business in Cyprus, being employed in Cyprus, or holding an office, such as a directorship, in a Cyprus tax-resident company. The relevant business activity, employment or office must not be terminated during the tax year.
Maintaining a permanent residence in Cyprus is a separate condition of the 60-day rule. Owning or renting a Cyprus property does not, by itself, satisfy the required business, employment or directorship connection.
Does the 60-day rule give me the same Non-Dom benefits as the 183-day rule?
Yes. Non-Dom status depends on the individual’s domicile position, not on whether Cyprus tax residency was established under the 60-day rule or the 183-day rule. A qualifying Cyprus tax resident under either route may benefit from an exemption from Special Contribution for Defence on dividend and interest income.
Non-Dom treatment generally continues until the individual becomes deemed domiciled in Cyprus after being a Cyprus tax resident for at least 17 of the 20 tax years preceding the relevant tax year. From 2026, certain individuals whose domicile of origin is outside Cyprus may apply to extend the exemption, subject to the applicable conditions and payment requirements.
What happens if I fail one of the four conditions in a given year?
Each calendar year is assessed separately. If you fail to satisfy any one of the four conditions, you will not qualify as a Cyprus tax resident under the 60-day rule for that year.
You may still qualify as a Cyprus tax resident if you spend more than 183 days in Cyprus during the same calendar year. If neither route applies, you will not be treated as a Cyprus tax resident for that year and cannot claim Cyprus Non-Dom benefits that depend on Cyprus tax residency.
Your eligibility can be assessed again in the following calendar year. Because a change in travel days, employment, directorship or the availability of your Cyprus residence could affect your position, the circumstances should be reviewed before relying on an issued Tax Residency Certificate.
