Tax Residency in Cyprus
Tax Residency in Cyprus
Tax Residency in Cyprus
Cyprus offers flexible and advantageous tax residency options for international individuals and entrepreneurs. Below, we explore the main routes to tax residency and how they can benefit you.
Become a Cyprus Tax Resident in Just 60 Days
Since 2017, Cyprus allows individuals to obtain tax residency by staying just 60 days a year — under specific conditions:
- Spend at least 60 days in Cyprus
- Maintain a permanent home (owned or rented)
- Not be tax resident elsewhere
- Do not spend over 183 days in another country
- Have employment, business, or a directorship in a Cyprus company
Combine this rule with non-dom status for maximum tax efficiency.
Non-Domiciled Tax Status in Cyprus
Introduced in 2015, the non-dom regime exempts Cyprus tax residents from paying Special Defence Contribution (SDC) on:
- Dividends (0%)
- Interest (0%)
- Rental income (0% SDC, income tax may still apply)
This exemption lasts for up to 17 years, provided the individual has not been a tax resident of Cyprus for 17 out of the last 20 years.
Which Option Is Best for You?
| Category | 60-Day Rule | Non-Dom Status |
|---|---|---|
| Purpose | Become a Cyprus tax resident with minimal time in country | Obtain full exemptions on passive income |
| Who qualifies? | Frequent travellers, entrepreneurs, remote professionals | Cyprus tax residents not domiciled in Cyprus |
| Key Benefits | Efficient tax residency with just 60 days in Cyprus | 0% tax on dividends, interest, and SDC rental income |
| Can be combined? | ✅ | ✅ |
Contact us to find out how to use these tools to your advantage.
Speak with a Cyprus Tax Specialist
Want to understand whether the 60-day rule, non-dom status, or both are right for you?
Contact Christophi & Associates LLC for a personalised consultation. We offer clear advice, strategic guidance, and help you benefit from Cyprus’s most attractive tax features.
❓ Frequently Asked Questions: Cyprus Tax Residency
1. What is the 60-day rule for Cyprus tax residency?
The 60-day rule allows individuals to become tax residents of Cyprus by spending just 60 days in the country per calendar year, provided they meet certain conditions, such as having a permanent residence in Cyprus and conducting business or employment here.
2. What is the non-domiciled (non-dom) tax status in Cyprus?
The non-dom regime exempts Cyprus tax residents who are not domiciled in Cyprus from Special Defence Contribution (SDC) tax. This means no tax on dividends, interest, or certain rental income — for up to 17 years.
3. Can I qualify for both the 60-day rule and non-dom status?
Yes, and in fact, many individuals use both. You can gain Cyprus tax residency through the 60-day rule and then enjoy the non-dom tax exemptions if you are not considered domiciled in Cyprus.
4. Who is considered non-domiciled in Cyprus?
Generally, individuals born outside Cyprus to non-Cypriot parents are non-domiciled. You are considered domiciled if you have been a Cyprus tax resident for at least 17 of the past 20 years or if you have a Cyprus domicile of origin.
5. What taxes do non-domiciled residents pay in Cyprus?
Non-doms are exempt from SDC tax on dividends, interest, and certain rental income. They still pay income tax, but may benefit from further exemptions such as the 50% tax discount on income exceeding €100,000 per year.
6. What are the main benefits of becoming a Cyprus tax resident?
Cyprus offers:
0% tax on dividends and interest for non-doms
Up to 50% income tax exemption for high earners
One of the lowest corporate tax rates in the EU (12.5%)
Access to EU residency and double tax treaty benefits
7. Do I need to permanently live in Cyprus to qualify?
Not necessarily. The 60-day rule allows you to maintain tax residency while spending much of the year abroad, as long as you meet all the criteria.
8. How long can I benefit from non-dom status?
You can enjoy non-dom status for up to 17 years, unless you become domiciled in Cyprus during that period (e.g., by living here for 17 out of 20 years).
9. What kind of income is exempt under the non-dom regime?
Dividends: 0% tax
Interest: 0% tax
Rental income: Exempt from SDC, though standard income tax may still apply
10. How can I get started?
Contact Christophi & Associates LLC for a personalised consultation. We offer clear advice, strategic guidance, and help you benefit from Cyprus’s most attractive tax features.