Cyprus Tax Residency: The 60-Day Rule

Q: How are days calculated for Cyprus tax residency?

Cyprus uses a specific “arrival/departure” logic:The day of arrival in Cyprus counts as a day in Cyprus.The day of departure from Cyprus counts as a day outside Cyprus.Arrival and departure on the same day counts as one day in Cyprus.

Establish your global tax base in Europe with just 60 days of presence.

The Cyprus 60-day rule is the most flexible Cyprus tax residency framework in the European Union.

Following the comprehensive tax reform voted on December 22, 2025, this rule remains a cornerstone of the Cyprus tax system, offering a legal pathway to 0% tax on worldwide dividends and interest for international entrepreneurs, digital nomads, and high-net-worth individuals.

The 2026 Advantage: Why the 60-Day Rule?

In 2026, Cyprus has increased the personal tax-free threshold to €22,000, making the 60-day rule even more financially attractive.

Feature	183-Day Rule	60-Day Rule (The Expat Choice)
Minimum Presence	183 Days	60 Days
Global Income Tax	Resident Status	Resident Status
Tax-Free Threshold	€22,000	€22,000
Non-Dom Benefits	Available	Available
Other Jurisdictions	Max 182 days	Max 182 days in any other single country

Official 2026 Requirements for the 60-Day Rule

To qualify for a Tax Residency Certificate (TRC) under the 60-day rule in 2026, you must cumulatively satisfy these five conditions:

60-Day Presence: Stay in Cyprus for at least 60 days during the calendar year (January 1 – December 31).
No Other Residency: Do not stay in any other single country for more than 183 days and are not a tax resident elsewhere.
Permanent Home: Maintain a permanent residential property in Cyprus (owned or rented).
Business Tie: Carry out business in Cyprus, be employed in Cyprus, or hold an office (Director) in a Cyprus tax-resident company.
Continuity: The business or employment must be maintained until December 31 of the tax year.

Why Choose Cyprus? The "Non-Dom" Advantage

Becoming a resident is the gateway to the Non-Domicile (Non-Dom) Regime. If you were not a Cyprus tax resident for at least 17 of the last 20 years, you gain:

0% Tax on Dividends: Worldwide dividend income is exempt from Special Defence Contribution (SDC).
0% Tax on Passive Interest: No tax on bank interest or bond yields.
50% Income Tax Exemption: For individuals with employment income exceeding €55,000 (valid for 17 years).
No Inheritance or Wealth Tax: Protect your legacy and assets globally.

Step-by-Step: How to become a Cyprus Tax Resident

Our firm handles the digital and physical filing to ensure your Tax Residency Certificate (TRC) is issued without delays.

Phase 1: Registration & Documentation
We assist with property lease agreements and the registration of your Cyprus company or employment contract to satisfy the “Business Tie” requirement.

Phase 2: Day Counting & Evidence
We provide a Day-Counting Audit. The Tax Department calculates days as follows:

Day of arrival = 1 day in Cyprus.
Day of departure = 1 day outside Cyprus.
Arrival and departure on same day = 1 day in Cyprus.

Phase 3: Issuance of Form T.F. 126
Once the 60-day threshold is met, we file Form T.F. 126 along with your boarding passes and proof of business activity to secure your official TRC.

Frequently Asked Questions about The 60-Day Rule in Cyprus

How are days calculated for Cyprus tax residency?

Cyprus uses a specific “arrival/departure” logic:

The day of arrival in Cyprus counts as a day in Cyprus.
The day of departure from Cyprus counts as a day outside Cyprus.
Arrival and departure on the same day counts as one day in Cyprus.

What happens if my employment is terminated mid-year?

Under the 60-day rule, if your business or employment in Cyprus is terminated during the tax year, you lose your tax residency status for that specific year. Continuous economic ties are mandatory.

Can I apply for the 60-day rule if I am a UK resident?

Yes, but specific “tie-breaker” rules in the UK-Cyprus Double Tax Treaty will apply. Generally, the 60-day rule is designed for those who “float” between jurisdictions and do not trigger residency elsewhere.

Does the 60-day rule apply to EU and Non-EU citizens?

Yes. However, Non-EU citizens must also hold a valid residency permit (such as a Digital Nomad Visa or Pink Slip) to satisfy the legal right to remain in the country.