By Nexora Cyprus editorial team · General information — seek advice for your circumstances
Quick Summary
Cyprus tax residency can be established with just 60 days of physical presence per year under the 60-day rule, provided the individual also maintains a permanent home in Cyprus and has Cyprus employment, business, or directorship activity. From 1 January 2026, the condition that the individual must not be a tax resident of any other country was removed, significantly broadening eligibility for internationally mobile founders.
2026 Update: Key Change to the 60-Day Rule
Effective 1 January 2026, the Cyprus 60-day tax residency rule was amended to remove the condition that the individual must not be a tax resident of any other country. Under the revised rule, Cyprus tax residency via the 60-day route requires: (1) at least 60 days of physical presence in Cyprus, (2) a permanent residence in Cyprus (owned or rented), and (3) employment, directorship, or business activity in Cyprus during the year. The removal of the 'single residency' condition significantly broadens eligibility for founders who maintain dual residency arrangements.
An individual can become a Cyprus tax resident under one of two tests: (1) the 183-day rule (the standard rule: simply spend 183 or more days in Cyprus in a calendar year); or (2) the 60-day rule (an alternative qualification path introduced in 2017 for individuals who split their time between multiple countries).
The 60-day rule is the more practically useful route for internationally mobile individuals who cannot commit to spending more than half the year in Cyprus.
To qualify for Cyprus tax residency under the 60-day rule in a given tax year, an individual must satisfy all of the following conditions:
Effective 1 January 2026, the former condition requiring that the individual not be a tax resident of any other country was removed. An individual can now qualify for Cyprus tax residency under the 60-day rule even if they are simultaneously treated as tax-resident in another jurisdiction, provided the remaining four conditions are satisfied.
Prior to the 2026 reform, the 60-day rule included a condition requiring that the individual not be a tax resident of any other country in the same tax year. This condition created significant barriers for internationally mobile individuals who maintained residency ties in their home country during a transition to Cyprus.
The 2026 amendment removes this condition entirely. The practical effect is that founders, investors, and mobile professionals who maintain Cyprus connections (home + business/directorship + 60+ days) can now establish Cyprus tax residency even while simultaneously holding tax residency status in another country. This substantially broadens eligibility and simplifies multi-year transition planning.
Key Tax Benefits — Cyprus Tax Resident Individual
| Benefit | Detail |
|---|---|
| Non-dom SDC exemption on dividends | 0% SDC for first 17 years (non-dom status) |
| Non-dom SDC exemption on interest | 0% SDC on interest income (vs 30% for domiciled) |
| Capital gains exemption (titles) | Gains on shares/securities not taxable |
| Access to Cyprus DTT network | 65+ tax treaties for income sourced abroad |
| No inheritance tax | Cyprus has no inheritance or estate tax |
| 50% income tax exemption (new residents) | For employment income >€55,000/year, first 10 years |
Cyprus Tax Department documents and Cyprus Tax Reform 2026 material publish the controlling material for this topic. Check the current law, form, circular or portal instructions before acting; this article is general information and the live official material prevails.
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Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws change frequently. Consult a qualified Cyprus adviser for guidance specific to your situation. The information on this page is general guidance only and does not constitute legal, tax, accounting, immigration or financial advice. Specific advice should be obtained based on the facts of each case.
— References linked in this article
Read each reference alongside the claim it accompanies and check current amendments before relying on it. General information — seek advice for your circumstances.
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