Tax residency in Cyprus in 60 days

Cyprus is rapidly gaining popularity as a modern destination for those seeking both lifestyle and tax efficiency. With its sun-soaked coasts, robust infrastructure, and a friendly environment for business, it's no wonder that international entrepreneurs and digital nomads are paying attention. But beyond the beaches and vibrant ex-pat life lies a tax system that rewards those who structure things smartly. Today, let’s break down how you can qualify for tax residency in Cyprus in just 60 days – and why that matters.

What is tax residency and why does it matter?

Tax residency determines where you pay taxes on your worldwide income. In many countries, becoming a tax resident often means navigating long, expensive processes or complicated physical presence rules. Cyprus stands out for its clear, accessible framework – giving people real options.

By becoming a tax resident in Cyprus, you can benefit from low personal tax rates, generous exemptions, and access to more than 60 double tax treaties. But the real game-changer is the option to establish tax residency in as few as 60 days a year.

The 60-day rule: Key requirements at a glance

Since 2017, Cyprus allows individuals to become tax residents even if they spend as little as 60 days in the country during a calendar year. However, there’s more to it than just booking a couple of months in the sun. Here’s a practical breakdown of what you need:

  • Physical presence: You must stay in Cyprus for at least 60 days in a tax year (January to December).
  • No tax residency elsewhere: You cannot be a tax resident in any other country during that year.
  • 183-day limit: You must not spend more than 183 days in any one other country in the same year.
  • Business or employment in Cyprus: You must either carry on a business, be employed, or hold an official position (like director) in a Cyprus tax resident company during the year.
  • Permanent residential property: You must own or rent a permanent home in Cyprus, available for the whole tax year.

This last point can be a practical hurdle – even if you’re only present in Cyprus for two months, you’ll need a valid residential lease or property ownership to qualify. For more legal insights around this, consider consulting experts like Legarithm who can clarify if any alternative arrangements suit your situation.

How are days counted under the 60-day rule?

The calculation can get a bit technical, so let’s keep it clear:

  • Day of arrival in Cyprus: Counts as a day in Cyprus.
  • Day of departure from Cyprus: Counts as a day outside Cyprus.
  • If you arrive and depart on the same day: It counts as a day in Cyprus.
  • If you depart and arrive on the same day: It counts as a day outside Cyprus.

Careful tracking of your travel calendar is crucial to avoid missing eligibility.

The non-domicile tax regime: Big benefits with Cyprus residency

Perhaps the most attractive part of Cyprus tax residency is the “non-domiciled” (non-dom) regime. This is a special status for individuals who become tax residents in Cyprus but are not “domiciled” there (typically, those who weren’t born in Cyprus or haven’t lived there for a prolonged period).

Non-doms are exempt from the Special Defence Contribution (SDC) tax — meaning no tax on most dividends, interest, or rental income from any source, Cyprus or abroad. This regime lasts up to 17 years.

This is especially powerful for entrepreneurs and investors, as most countries tax such income aggressively. If you structure things right, your global passive income can be nearly tax-free in Cyprus. For active income like business profits or salaries, standard progressive tax rates apply — but the first €19,500 of annual income is always tax-free.

Income tax rates and other Cyprus taxes

Here’s a quick overview of the main taxes for Cyprus tax residents:

  • Personal income tax: 0% on the first €19,500. After that, progressive rates apply (20–35%).
  • Capital gains tax: Only applies (20%) to gains from Cyprus-based immovable property (like land or buildings).
  • Pension tax: Special regime available — you can choose to be taxed at 5% on pension income over €3,420 per year.
  • Special Defence Contribution (SDC): As covered above, non-doms are exempt. Domiciled residents pay SDC on certain investment and rental income.
  • Municipal and health taxes: Levied on a local basis.
  • No inheritance tax: Cyprus does not impose inheritance tax.

How to apply for tax residency in Cyprus

The application process isn’t overly complex, but detailed paperwork and local rules can be confusing if you’re new to the system.

Here’s what you’ll need:

  1. Proof of physical presence: Travel stamps or boarding passes to prove 60+ days spent in Cyprus annually.
  2. Proof of permanent residence: Title deeds or a 12-month rental contract.
  3. Proof of economic tie: Employment contract, business registration, or company directorship documents.
  4. Certification you are not tax resident elsewhere
  5. Banking and tax records: For practical day-to-day living and facilitation.

Once submitted to the Cyprus Tax Department, you’ll be issued with a tax residency certificate, enabling you to claim relevant benefits in Cyprus and with other countries.

Practical tips and common questions

  • Do you really need a year-round home if you’re only there 60 days? Yes, the law currently requires an ongoing (usually year-long) rental contract or property ownership, even if you aren’t present all year. Some applicants try flexible rental options, but for full compliance, a 12-month lease is usually needed.
  • What about remote work or digital nomadism? As long as you hold an official position or run a Cyprus company and meet the residence and property criteria, remote work can align with the requirements. Careful planning needed to stay compliant both in Cyprus and abroad.
  • Will you lose your Spanish (or current) tax residency? Rules vary country to country. To enjoy Cyprus benefits, ensure you’re not considered resident elsewhere — usually by not being present in another country over 183 days or showing stronger personal/economic ties to Cyprus.

Is Cyprus right for you?

Cyprus offers a clear, legal path to low-tax living — but it works best for individuals willing to spend at least two months a year on the island, with the means to maintain a legal home base there. Non-dom status offers huge incentives for those with significant passive income from investments, as well as international entrepreneurs.

Cyprus isn’t just a beautiful place to live — it’s a practical base for those who want to make the most of their global lifestyle. With the right approach, 60 days a year is all it takes to reap the rewards.

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