Cyprus Personal Tax Residency Explained

In this episode, we unpack the rules that determine personal tax residency in Cyprus, one of the most sought-after jurisdictions for individuals looking to optimize their global tax position.

Cyprus offers two distinct routes to tax residency — the classic 183-day rule and the flexible 60-day rule, making it a uniquely accessible and compliant destination for entrepreneurs, investors, and internationally mobile professionals.

We’ll explain how each rule works, what conditions must be met, and the tax advantages available once you become a Cyprus tax resident.

📅 The Two Routes to Tax Residency

1. The 183-Day Rule

The traditional route:

Anyone who spends more than 183 days in Cyprus during a calendar year automatically qualifies as a Cyprus tax resident — no other conditions apply.

2. The 60-Day Rule (Introduced in 2017)

A shorter and more flexible path, available only if all four conditions are met:

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• Spend at least 60 days in Cyprus during the tax year;
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• Carry out business, be employed, or hold an office (e.g. as a director) in a Cyprus-resident entity;
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• Maintain a permanent residence in Cyprus, either owned or rented;
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• Not be tax resident in any other country and not spend more than 183 days in any other jurisdiction.
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🟨 Important: If employment or business activity in Cyprus ends during the year, tax residency for that year is lost.

🧾 Tax Residency Certificate

A Cyprus tax residency certificate can be obtained even before completing 60 days of stay, provided all conditions are satisfied and the certificate relates to foreign income (such as dividends or interest).

This feature is particularly useful for investors who need proof of residency to access treaty benefits or manage international income flows.

💰 Tax Treatment of Cyprus Tax Residents

Cyprus tax residents — under either rule — are taxed on worldwide income.

However, the system includes significant tax exemptions and incentives:

✅ Non-Domiciled (Non-Dom) Status

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• Non-domiciled residents enjoy up to 17 years of exemption from the Special Defence Contribution (SDC).
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• This means dividends and interest are completely tax-free.
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✅ Other Key Benefits

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• No capital gains tax on share disposals.
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• 50% income tax exemption on Cyprus-sourced salaries exceeding €55,000 per year.
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• No wealth tax, inheritance tax, or gift tax.
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🧩 Strategic Advantages

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• Ideal for international entrepreneurs, digital nomads, and executives with flexible global mobility.
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• The 60-day rule provides one of the most accessible residency paths in the EU.
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• Combining residency with non-dom status offers long-term tax efficiency...