How to establish a tax residency in Cyprus in 60 days

If you’re looking for a straightforward way to reduce your global tax burden, Cyprus should be on your radar. With its sunny beaches and welcoming business climate, Cyprus offers one of the most accessible tax residency regimes in Europe. You can become a tax resident in Cyprus within just 60 days—a massive advantage for digital nomads, entrepreneurs, and anyone seeking more flexibility in their financial lives. Let’s break down exactly how the Cyprus 60-day tax residency works, its requirements, and what benefits you can expect.

What is the Cyprus 60-day tax residency rule?

Cyprus makes it possible to become a tax resident by spending as little as 60 days per year on the island, provided you meet several key conditions. This is an alternative to the traditional 183-day rule found in many countries. Here’s what you need to qualify under the 60-day rule:

  • Stay in Cyprus for at least 60 days in a tax year
  • Not be tax resident in any other country during that year
  • Not spend more than 183 days in any other single country
  • Carry out business activities, work in Cyprus, or hold a directorship in a Cyprus tax-resident company
  • Maintain a permanent residential property in Cyprus (rented or owned) for the whole year

That’s it. If you tick these boxes, Cyprus considers you a tax resident for the given year.

Steps to establish tax residency in 60 days

1. Plan your travel and stay

First, make sure your calendar works out. You’ll need to spend at least 60 days in Cyprus, which can be broken up across the year if you wish. Track your arrival and departure dates carefully—both are counted as days of residence if you arrive and leave the same day.

2. Do not become tax resident elsewhere

This is important: you cannot be tax resident in any other country for the same year. Also, you must not spend more than 183 days in any single other country.

3. Create real ties: work or business in Cyprus

You’ll need to show an active connection to Cyprus. That could mean being employed by a local business, running your own company, or holding a directorship in a Cyprus company. Many people choose company formation in Cyprus for this purpose, as it’s a reliable way to fulfill the active business criterion and unlock additional benefits.

4. Arrange your accommodation

A crucial part of the process is maintaining a permanent residential property in Cyprus—either by buying or renting. Note that the rental or ownership must cover the full tax year, not just the 60 days you’re physically in the country. Yes, this can feel like a sunk cost if you’re away most of the year, but it’s a non-negotiable part of the program. There aren’t legal workarounds for this rule, so calculate this expense into your budget.

5. Register with the Cyprus Tax Authority

Once you’ve ticked the above boxes, register as a tax resident with the Cyprus Tax Authority. You will get your Cyprus Tax Identification Number (TIN), which you’ll use for all your tax filings and dealings in Cyprus.

The benefits of Cyprus tax residency

Cyprus offers a very attractive tax environment — both for income and for certain kinds of investment income.

  • Income tax: The first €19,500 of annual income is tax-free. After that, rates progress from 20% up to a maximum of 35% for income over €60,000.
  • Capital gains: Most capital gains from selling overseas assets are not taxable in Cyprus. Only gains from Cyprus real estate or shares in companies with Cyprus property are taxed, typically at 20%.
  • Pension income: Pensions can be taxed at a flat rate of 5% for income above €3,420, and double-taxation treaties reduce or eliminate tax elsewhere.
  • Non-domiciled program: Most foreign nationals who have not lived in Cyprus for more than 17 of the last 20 years will be considered “non-domiciled.” This is key: as a non-dom, you pay zero tax on worldwide dividends and most interest income for 17 years. This can mean substantial savings, especially for people with portfolio or passive income.
  • No wealth, inheritance, or gift taxes: Cyprus does not tax you on your wealth, or gifts and inheritances.
  • Double tax treaties: Cyprus has treaties with 60+ countries, making it easier to avoid double taxation.

What is the Special Defence Contribution (SDC) tax?

Normally, Cyprus residents would pay SDC tax on dividends (17%), interest (17%) and some rental income (3%). But as a non-domiciled tax resident, you are entirely exempt from SDC tax. That means dividends and most interest income, even if received from outside Cyprus, won’t be taxed at all. If you do have Cyprus rental income, only 75% of the gross amount is taxed at 3% under the SDC law.

For clarity, “domiciled” in Cyprus usually means you’ve lived on the island for 17 out of the last 20 years or have Cyprus as your domicile of origin. Most new residents don’t meet this, so they benefit from the non-dom regime.

Ongoing obligations as a Cyprus tax resident

  • You must re-qualify each tax year—meaning at least 60 days in Cyprus, permanent local accommodation, and no tax residency in another country.
  • File an annual Cyprus tax return, even if you owe nothing.
  • Comply with local health insurance and municipal taxes.

If you run a company in Cyprus or elsewhere, make sure your global business structure is solid. Double-check for “permanent establishment” or controlled foreign company risk—the right legal and tax planning here is crucial.

Frequently asked questions

Do non-residents pay taxes in Cyprus?

Non-residents only pay Cyprus tax on income earned within Cyprus. They don’t pay on their worldwide income.

How much income is tax-free?

The first €19,500 is exempt from income tax. Tax rates then rise to a max of 35% for high earners.

What is a non-domiciled Cyprus tax resident?

This is someone who is a Cyprus tax resident under the 60-day or 183-day rule but is not considered domiciled in Cyprus. Non-doms do not pay the SDC tax on dividends, most interest or rental income—making it a major draw for expats and international investors.

Final thoughts

Establishing tax residency in Cyprus in 60 days is both achievable and valuable, especially for globally mobile professionals and investors. Make sure you follow the rules carefully, especially regarding accommodation and your business ties. If you need tailored advice on company setup, non-domicile applications, or navigating Cyprus’s tax system, consider working with experienced professionals who can clear the way for you. Cyprus combines a great location, straightforward rules, and real tax savings—if you know how to make the most of it.

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